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FY 2005-2006

Unified Budget Recommendation

Alabama Commission on Higher Education

December 10, 2004

ALABAMA COMMISSION ON HIGHER EDUCATION

UNIFIED BUDGET RECOMMENDATION

FOR FISCAL YEAR 2005-2006

December 2004

"...... The Commission shall receive, evaluate and coordinate budget requests for the public institutions of higher education of this State, shall hold open hearings on the budget requests of the separate institutions and shall present to each institution and to the Governor and the Legislature, a single unified budget report containing budget recommendations for separate appropriations to each of the institutions. The consolidated budget and analysis of the Commission shall be accompanied by the original requests and their justifications as submitted by each institution. The recommendations of the commission shall be derived directly from its assessment of the actual funding needs of each of the universities, as presented to it by the presidents, which assessment may include, but shall not be limited to, derived conclusions that may be based upon standard techniques of objective measurement, need and unit cost figures arrived at through the use of comparative and verified data secured from the various institutions, applied in an impartial and objective manner, and comparison shall be made not only between similar functions of institutions in Alabama but also between Alabama institutions and similar functions of institutions located in other states, provided that nothing herein shall be construed to prohibit any institutions of higher education in this state from submitting any matter pertaining to the financial operation and needs of said institution to the legislature or to the governor at any time......"

Ala. Code §16-5-9(b) (1975)

TABLE OF CONTENTS Ala. Code §16-5-9(b) (1975) SECTION A

FY 2005-2006 Unified Budget Recommendation - Executive Summary Narrative Executive Summary Table State Level Higher Education Programs Tables FY 2005-2006 ACHE Standard Table FY 2005-2006 Unified Budget Recommendation Table FY 2005-2006 Unified Budget Recommendation Index Table

SECTION B

Higher Education Unified Budget Recommendation Program Detail: FY 2003-2004 and 2004-2005 Appropriations, FY 2005-06 Requests, ACHE Standards, and Recommendations

Alabama A&M University Alabama State University Athens State University Auburn University Auburn University at Montgomery Jacksonville State University Troy State University Troy State University Dothan Troy State University Montgomery

University of Alabama University of Alabama at Birmingham University of Alabama in Huntsville University of Montevallo University of North Alabama University of South Alabama University of West Alabama Total Senior Institutions Total Two-Year Institutions

State Level Higher Education Programs Grand Total Two-Year Institutions by Institution SECTION C

Funding Formulas and Unified Budget Recommendation Process Explanation of Funding Process CIP Codes and Weight Categories used in Academic Program Formula Calculation of Academic Program Multiplier

Estimation of General Studies Salaries Explanation of Academic Program Formula – Senior Institutions Explanation of Academic Program Formula – Two-Year Institutions Facilities Renewal Allowances and Backlog – Narrative Building Components Replacement Cost Table

Facilities Renewal Summary Table

Facilities Renewal Allowances and Backlog – Senior Institutions Facilities Renewal Allowances and Backlog – Two-Year institutions SECTION D

Supporting Data for Funding Formula Supporting Data - All Public Institutions 2005-2006 Academic Program Inputs Preliminary Fall Headcount – Public Senior Institutions Unweighted Remedial Semester Credit Hours Utilities Allowances Utilities Capital Replacement Allowance Sponsored Research SECTION E

Critical Capital Needs - Alabama Public Higher Education Narrative Summary of Capital Requests

SECTION A

FY 2005-2006 UNIFIED BUDGET RECOMMENDATION

by

THE ALABAMA COMMISSION ON HIGHER EDUCATION

A-1

Unified Budget Recommendation By The Alabama Commission on Higher Education

As prescribed by Section 16-5-9(b) of the Code of Alabama, the Alabama Commission on

Higher Education has evaluated the budgets submitted by the senior public institutions of

higher education and by the Chancellor of the community and technical colleges. At the

Commission meeting on December 10, 2004, the Commission reached two sets of higher

education funding recommendations for Fiscal Year 2005-2006.

The first recommendation, identified as the FY 2005-2006 Alabama Commission on Higher

Education (ACHE) Funding Standard, (column 2 of the Executive Summary table, pages A-4

& A-5) is a statement of the Commission's estimate of the basic financial requirements that

should be provided to support the institutions and their programs if Alabama higher education

is to provide regionally competitive education to its citizens. The second recommendation,

identified as the FY 2005-2006 Recommendation, (column 10 of the Executive Summary

table, pages A-4 & A-5) provides an overall appropriation increase of eleven point three-nine

percent (11.39%) from the Education Trust Fund (ETF).

The Commission recommends a funding level of $1,271,558,496 for all public colleges and

universities. The recommendation is based on the following (2-5 not in order of priority):

1. That each institution receive its last year’s total appropriation as its base. Monies previously associated with Knight v. Alabama, except for Alabama State University, for which the Court still requires certain line-item funding, were rolled into the base (Pages A-4 & A-5 column 1).

2. PEEHIP rate increase (the state provided health insurance, two-year public institutions,

JSU and Athens only) and retirement rate increases (Pages A-4 & A-5 columns 3, 5, & 6).

3. Amount needed to cover the requirements of Act 2003-473. This Act required the

public senior institutions not already participating in PEEHIP to cover the cost of their employees who enter PEEHIP after retiring (Page A-4 column 4).

4. Amount needed to cover the cost of a four-percent (4.0%) employee compensation

increase. Four-percent was used in these calculations; however, this percent should be adjusted to reflect the amount allocated to K-12 for employee compensation (Pages A-4 & A-5 column 7).

5. Increases to bring the percent recommended for the two-year colleges to the same

level as the four-year institutions (Page A-5 column 8).

A-2

The Commission approved these recommendations by unanimous vote of members present at the December 10, 2004 meeting. The Commission members believe that this recommendation reflects the best compromise possible between documented needs, as outlined in the ACHE Funding Standard, and the anticipated level of available revenues.

Alabama Commission on Higher Education (ACHE) Standard Recommendations

The ACHE Standard recommendations (page A-8) are based on the following (see Section C

for a more detailed explanation of the ACHE Funding Standard):

(1) The institutional Academic Programs, or "O&M," amounts are the products of the

Commission's funding formulas for academic programs;

(2) Facilities renewal needs are based on the Commission's formula for estimating

facilities renewal allowances and backlogs;

(3) Research and Public Service "line items" have been carried forward using an

allocation scheme based on instructional formulas;

(4) Necessary funds legally required to provide the employer’s matching share of FICA

and TRSA are included at levels expended the previous year; and

(5) Capital Outlay funds, while a continuing concern for higher education in Alabama,

are not recommended for funding from normal revenue sources. The Commission

continues to support special funding for the unmet capital needs of the institutions. The

Commission's recommendation for capital outlay is based on the Facilities Renewal

Formula referred to above.

Modified Funding Recommendations

Historic difficulties in proposing a Unified Budget Recommendation for higher education in

Alabama are magnified by the necessity to complete the recommendation process before firm

projections are made of ETF revenues and problems in resolving the gap between institutional

needs and available state resources. Once again, the Commission has struggled to provide a

viable recommendation within the confines of expected ETF revenues.

Facilities Renewal costs are included as a sum of the educational activities generating the

need. Each institution's recommendation includes an allocation based on the Facilities

Renewal Formula applied to inventoried space. The Commission continues to endorse

treatment of major capital needs for the several institutions via processes ancillary to the

regular appropriations bill.

A-3

The Commission also includes recommendations for other lines not directly associated with a

public college or university (Pages A-6 & A-7). These recommendations increase the total FY

2005-2006 recommendation by an additional $8,759,679. This brings the total increase in

funds needed to $138,230,921 or an increase of eleven point six-two percent (11.62%). The

total amount recommended for higher education from the Education Trust Fund is

$1,327,572,100.

Some statewide programs that benefit all of public higher education and all citizens of the

State are recommended at above average increases. These include the Alabama Student

Assistance Program, Articulation Program, EPSCoR, the Network of Alabama Academic

Libraries (NAAL), the Alabama Student Assistance Program, and the Alabama Agricultural

Land Grant Alliance.

Special Circumstances of this Unified Budget Recommendation

It is important to note that the Commission on Higher Education continues to seek a balance

between legitimate institutional needs, as reflected in the construction of the ACHE standard,

and the historic gap in actual appropriations. If Higher Education receives a fair share of

revenues and if the political leadership uses the recommended approach for distribution

among institutions, convergence of relative needs and appropriations will occur. That goal is

termed Equity in funding.

The Commission believes that the distribution incorporated in this Unified Budget

Recommendation is one of many required steps to improve higher education funding in

Alabama.

FY 2005-2006 Unified Budget RecommendationExecutive Summary

Alabama Public Higher Education Institutions

Estimated Funds Estimated Funds Estimated Funds 4.00%FY 2005-2006 for FY 2005-2006 for FY 2005-2006 for FY 2005-2006 Recommended Employee Compensation Simulated

FY 2004-2005 ACHE Retirement Payment for PEEHIP Increases for Including Percent FY 2005-2006 FY 2005-2006 PercentINSTITUTION Appropriation (1) Standard Rate Increase (2) University Retirees (3) Rate Increase (2) Other Purposes (4) Additional Benefits (5) Equalization Increase Recommendation Increase

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)

Alabama A&M University 32,495,853 40,904,330 338,155 1,022,928 1,772,361 3,133,444 35,629,297 9.64%Alabama State University 28,713,228 35,597,910 352,710 858,096 1,508,193 2,718,999 31,432,227 9.47%Auburn University 196,063,793 365,743,575 2,591,655 6,843,496 10,131,068 19,566,219 215,630,012 9.98%University of Alabama 126,565,217 217,153,901 1,576,325 6,181,200 7,336,468 15,093,993 141,659,210 11.93%Univ. of Alabama at Birmingham 222,473,405 467,218,446 4,847,179 12,027,888 10,861,894 27,736,961 250,210,366 12.47%Univ. of Alabama in Huntsville 38,560,052 66,033,882 422,787 1,158,672 1,992,058 3,573,517 42,133,569 9.27%University of South Alabama 86,621,887 165,250,191 2,043,955 4,115,952 5,851,623 12,011,530 98,633,417 13.87%

Doctoral O&M Total 731,493,435 1,357,902,235 12,172,766 32,208,232 39,453,665 83,834,663 815,328,098 11.46%

Athens State University 9,793,601 13,297,872 123,989 242,341 503,756 870,086 10,663,687 8.88%Auburn University at Montgomery 20,149,157 24,314,797 313,577 770,546 1,193,726 2,277,849 22,427,006 11.30%Jacksonville State University 30,602,335 42,009,285 362,305 993,840 1,689,814 3,045,959 33,648,294 9.95%Troy State University 24,092,226 37,767,900 351,890 1,408,589 1,581,700 3,342,179 27,434,405 13.87%Troy State University Dothan 6,307,639 10,050,302 85,334 217,956 364,829 668,119 6,975,758 10.59%Troy State Univ. Montgomery 6,993,172 13,241,591 102,584 220,542 575,822 898,948 7,892,120 12.85%University of Montevallo 15,869,700 18,770,092 165,000 940,512 696,712 1,802,224 17,671,924 11.36%University of North Alabama 22,425,293 30,735,493 238,583 1,153,824 1,174,677 2,567,084 24,992,377 11.45%University of West Alabama 9,969,650 15,578,855 117,770 349,056 485,958 952,784 10,922,434 9.56%

Nondoctoral O&M Total 146,202,773 205,766,187 1,861,032 5,061,025 1,236,181 8,266,994 16,425,232 162,628,005 11.23%

Senior Subtotal 877,696,208 1,563,668,422 14,033,798 37,269,257 1,236,181 47,720,659 100,259,895 977,956,103 11.42%

OtherAlabama A&M University Ag Res & Ext-State Match (6) 855,421 855,421 855,421

Alabama State University Desegregation Planning 184,906 184,906 184,906 Title VI Prog Enhancement 1,657,477 1,657,477 1,657,477 Master of Accountancy 131,185 141,414 10,229 10,229 141,414 7.80% BS-Health Information Mgmt. 402,407 383,291 (19,116) (19,116) 383,291 -4.75% BS-Occupational Therapy 426,891 471,738 44,847 44,847 471,738 10.51% MS-Physical Therapy 1,039,421 1,082,504 43,083 43,083 1,082,504 4.14% EdD Ed Leadership 1,655,316 2,007,767 352,451 352,451 2,007,767 21.29% Ph.D Microbiology TBD TBD TBD TBD

Total 884,049,232 1,570,452,940 14,033,798 37,269,257 1,667,675 47,720,659 100,691,389 984,740,621 11.39%

allocation. The total amount recommended for FY 2005-2006 is $3,044,199.

1) Funds previously associated with Knight v. Alabama are now included in each institutions FY 04-05 appropriation, except for Alabama State University, for which the Court still requires certain line-item funding. The FY 2004-2005 funds are also reflected in the FY 2005-2006 Recommendation.

3) Any increase in retirees from the July 2004 count would not be included in estimated amount for FY 2005-2006. FY 2005-2006 rate based on an increase of approximately 20%. This estimate has been calculated by the Alabama Commission on Higher Education or has

6) Additional FY 04-05 allocation of $762,351 for this line is included in the line for the Alabama Agricultural Land Grant Alliance (AALGA). The total amount allocated for FY 2004-2005 was $1,617,772. An additional $1,426,427 will be recommended for FY 05-06 in the AALGA 5) Based on Unrestricted E&G salaries.4) Funds for Athens State University and Jacksonville State University are to cover the cost of the PEEHIP rate increase.

2) Based on calculations made by the AL Comm. on Higher Education using the increase in FY 2005 rate (7.03) to 8.17% in FY 2006 or as supplied by the institution. Rates subject to change due to legislative action.

been supplied by the institution and has not been verified by PEEHIB and is subject to any legislative action that might be taken up in regular or special session.

A-4

FY 2005-2006 Unified Budget RecommendationExecutive Summary

Alabama Public Higher Education Institutions

Estimated Funds Estimated Funds Estimated Funds 4.00%FY 2004-2005 FY 2005-2006 for FY 2005-2006 for FY 2005-2006 for FY 2005-2006 Recommended Employee Compensation Simulated

O&M ACHE Retirement Payment for PEEHIP Increases for Including Percent FY 2005-2006 2005-2006 PercentINSTITUTION Appropriation (1) Standard Rate Increase (7) University Retirees Rate Increase (7) Other Purposes Additional Benefits (5) Equalization Increase Recommendation Increase

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)

Alabama Southern 6,452,361 4,343,134 51,257 116,762 224,041 292,032 684,092 7,136,453 10.60%Bessemer 6,183,894 4,040,531 53,393 113,295 231,125 279,882 677,695 6,861,589 10.96%Bevill State 15,887,381 13,250,272 126,202 293,269 517,741 719,059 1,656,271 17,543,652 10.43%Bishop 13,411,797 13,468,301 135,061 301,921 551,568 607,015 1,595,565 15,007,362 11.90%Calhoun 16,554,563 15,314,909 170,982 342,428 785,034 749,256 2,047,699 18,602,262 12.37%Central Alabama 7,074,496 6,072,472 66,193 122,401 263,032 320,190 771,816 7,846,312 10.91%Chattahoochee 4,599,178 5,189,038 42,038 96,937 207,004 208,158 554,137 5,153,315 12.05%Drake 3,479,219 2,341,905 31,526 66,341 149,841 157,469 405,177 3,884,396 11.65%Enterprise-Ozark 7,707,828 6,799,901 80,956 170,245 349,111 348,855 949,167 8,656,995 12.31%Faulkner 7,778,270 8,206,711 78,350 172,080 366,678 352,043 969,150 8,747,420 12.46%Gadsden 20,101,083 18,831,119 221,248 393,623 899,241 909,770 2,423,882 22,524,965 12.06%Ingram 6,291,482 2,636,777 48,982 88,643 198,100 284,751 620,476 6,911,958 9.86%Jeff Davis 5,701,163 4,825,071 50,440 103,629 221,461 258,033 633,563 6,334,726 11.11%Jefferson State 20,773,741 18,043,871 174,581 380,476 1,029,254 940,215 2,524,525 23,298,266 12.15%Lawson 8,238,610 7,477,412 74,383 188,653 307,339 372,878 943,252 9,181,862 11.45%L. B. Wallace 6,627,437 4,966,994 63,221 127,481 260,336 299,956 750,994 7,378,431 11.33%Northeast 5,112,199 5,984,536 48,390 94,412 234,848 231,377 609,027 5,721,226 11.91%Northwest Shoals 10,172,788 12,522,037 109,776 231,728 457,824 460,418 1,259,746 11,432,534 12.38%Reid 3,910,083 2,467,477 39,215 76,612 168,551 176,969 461,347 4,371,430 11.80%Shelton 15,759,066 17,004,119 153,752 366,498 634,747 713,252 1,868,249 17,627,315 11.86%Snead 5,119,679 5,630,578 34,576 90,870 191,815 231,715 548,976 5,668,655 10.72%Southern Union 12,018,181 13,654,262 94,257 210,837 443,731 543,940 1,292,765 13,310,946 10.76%Trenholm 9,299,086 5,341,910 81,335 166,170 342,624 420,874 1,011,004 10,310,090 10.87%Wallace - Dothan 14,240,567 11,806,759 133,167 267,702 559,395 644,525 1,604,789 15,845,356 11.27%Wallace - Hanceville 13,190,289 14,906,969 122,123 305,751 557,697 596,989 1,582,561 14,772,850 12.00%Wallace - Selma 6,415,827 4,788,963 55,544 110,325 235,425 290,379 691,673 7,107,500 10.78%Shelton State Fire College 4,348,417 4,348,417 22,635 56,950 109,979 189,564 4,537,981 4.36%Unallocated 1,042,026 1,042,026

Two Year Total 257,490,711 234,264,445 2,363,583 5,056,039 10,497,541 11,410,000 29,327,163 286,817,874 11.39%

Total All Institutions 1,141,539,943 1,804,717,385 16,397,381 37,269,257 5,056,039 1,667,675 58,218,201 11,410,000 130,018,553 1,271,558,496 11.39%

2) Based on calculations made by the AL Comm. on Higher Education using the increase in FY 2005 rate (7.03) to 8.17% in FY 2006 or as supplied by the institution. Rates subject to change due to legislative action.3) Any increase in retirees from the July 2004 count would not be included in Estimates amount for FY 2005-2006. FY 2005-2006 rate based on an increase of approximately 20%. This estimate has been calculated by the Alabama Commission on HigherEducation or has been supplied by the institution and has not been verified by PEEHIB and is subject to any legislative action that might be taken up in regular or special session.4) Funds for Athens State University and Jacksonville State University are to cover the cost of the PEEHIP rate increase.5) Based on Unrestricted E&G salaries.

1) Funds previously associated with Knight v. Alabama are now included in each institutions FY 04-05 appropriation, except for Alabama State University, for which the Court still requires certain line-item funding. The FY 2004-2005 funds are also reflected in the FY 2005-2006 Recommendation.

6) Additional FY 04-05 allocation of $762,351 for this line is included in the line for the Alabama Agricultural Land Grant Alliance (AALGA). The total amount allocated for FY 2004-2005 was $1,617,772. An additional $1,426,427 will be recommended for FY 05-06 in the AALGA allocation. The total amount recommended for FY 2005-2006 is $3,044,199. 7) Supplied by the Alabama Department of Postsecondary Education.

A-5

ALABAMA COMMISSION ON HIGHER EDUCATION 2004-2005 Appropriation, 2005-2006 Request, ACHE Standard, and Recommendation

2005-2006 2005-2006 ACHE2004-2005 2005-2006 ACHE Recommended Percent

Appropriation Request Standard Budget Difference Change(2) (1) (2) (3) (4) (5)

Total Public institutions 1,141,539,944 1,294,636,816 1,804,717,386 1,271,558,496 130,018,553 11.39%

STATE LEVEL HIGHER EDUCATION PROGRAMS

Other Two-Year

Postsecondary Education Department 3,636,923 3,806,197 3,806,197 169,274 4.65%

Adult Basic Education 6,433,111 11,433,111 6,773,423 340,312 5.29%

Alabama Ind. Devel. Trng. Inst. 6,587,546 7,087,546 6,936,027 348,481 5.29%

C.I.T.Y Program 4,431,273 4,844,252 4,665,687 234,414 5.29%

Subtotal: Other Two-Year 21,088,853 27,171,106 22,181,334 1,092,481 5.18%

Other Higher Education

MESC/Dauphin Island Sea Lab 2,919,846 3,802,969 3,074,306 154,460 5.29%

Private Colleges & Schools *Marion Military Institute 217,496 359,692 229,002 11,506 5.29% **Talladega College 363,756 363,756 363,756 **A&M/Miles Consortium 173,436 173,436 173,436

State-Related Institution Tuskegee University 4,726,460 21,495,608 4,976,490 250,030 5.29%

Total: Private & State-Related Institutions 5,481,148 22,392,492 5,742,683 261,535 4.77%

Medical Scholarships BoardBd. of Dental Schol. AwardsBd. of Optometric Schol. Awards

Subtotal: Other Higher Education 8,400,994 26,195,461 8,816,989 415,995 4.95%

* 70% of Appropriation and Request is shown. The remaining 30% is allocated to K-12 Appropriation. Total requested for 2005-2006 is $513,845.** Talladega College and the A&M Miles College Consortium did not request any increases over what was received in FY 04-05.

A-6

ALABAMA COMMISSION ON HIGHER EDUCATION 2004-2005 Appropriation, 2005-2006 Request, ACHE Standard, and Recommendation

2005-2006 2005-2006 ACHE2004-2005 2005-2006 ACHE Recommended Percent

Appropriation Request Standard Budget Difference Change(2) (1) (2) (3) (4) (5)


Planning & Coordination Services 2,322,691 2,552,637 2,552,637 229,946 9.90%

Articulation Program 330,000 450,000 450,000 120,000 36.36% SREB 713,471 845,000 845,000 131,529 18.44% Network of AL Academic Libraries 319,655 1,500,000 1,500,000 1,180,345 369.26% EPSCOR 481,139 600,000 600,000 118,861 24.70% Governor's Comm./Hist. Black Coll/Univ Small Business Develop. Consortium Subtotal: Statewide 1,844,265 3,395,000 3,395,000 1,550,735 84.08%

Chiropractic Scholarships AL National Guard Schol. Prog. 675,143 675,143 675,143 AL Student Assistance Program 820,558 2,652,707 2,652,707 1,832,149 223.28% AL Educational Grant Program (ASGP) 1,768,471 884,235 884,235 (884,236) -50.00% Police and Fire Fighters' Survivors Tuition 95,880 95,880 95,880 Subtotal: Student Aid 3,360,052 4,307,965 4,307,965 947,913 28.21%

Alabama Agricultural Land Grant Alliance 2,024,702 6,000,000 6,000,000 3,975,298 196.34%

Total: ACHE and Statewide Pgms. 9,551,710 16,255,602 16,255,602 6,703,892 70.19%

SUBTOTAL: ALL STATE LEVEL PGMS. 39,041,557 69,622,169 47,253,925 8,212,368 21.03% TOTAL SENIOR, TWO YEAR & STATE LEVEL 1,180,581,501 1,364,258,985 1,804,717,386 1,318,812,421 138,230,921 11.71%

Knight vs. AL Financial Obligations (excluding Court-Ordered Pgms & Minority Recruitment & Retention Line) 8,759,679 8,759,679

TOTAL SENIOR, TWO YEAR & STATE LEVEL 1,189,341,180 1,364,258,985 1,804,717,386 1,327,572,100 138,230,921 11.62%Note: Additional funds for programs which have been previously funded and which are related to higher education but for which the Alabama Commission on Higher Education has no direct function or adequate information have not been included in the numbers above. The amounts for these programs in FY 03-04 added to $23,554,074 and $20,203,026 in FY 04-05. The Commission makes no recommendation on funding for these programs.

A-7

Alabama Commission on Higher EducationFY 2005-2006 ACHE Funding StandardPublic Institutions of Higher Education

Distributed by Major Category

Facilities 2005-2006Public Renewal ACHE

INSTITUTION AP 1stProfHlth AES/CES Research Service Agric Allowance Standard(1) (2) (3) (4) (5) (6) (7) (8)

Alabama A&M University 36,586,740 846,396 1,079,427 338,291 2,053,477 40,904,330Alabama State University 29,772,683 2,049,138 2,092,496 1,683,594 35,597,910Auburn University 174,324,175 59,729,589 82,013,606 19,470,985 21,426,267 8,778,952 365,743,575University of Alabama 162,755,472 10,375,832 17,530,578 17,530,578 8,961,442 217,153,901University of Alabama at Birmingham 174,712,995 216,359,990 31,285,839 31,285,839 13,573,784 467,218,446University of Alabama in Huntsville 55,237,890 4,468,273 4,074,003 2,253,717 66,033,882University of South Alabama 82,735,822 57,090,315 9,109,794 9,117,701 7,196,561 165,250,191

Doctoral O&M Subtotal 716,125,776 343,555,725 82,013,606 84,761,001 86,606,309 338,291 44,501,527 1,357,902,235

Athens State University 11,551,313 408,141 816,281 522,137 13,297,872Auburn University Montgomery 20,874,502 717,533 1,515,059 1,207,703 24,314,798Jacksonville State University 36,501,535 1,271,344 2,542,688 1,693,719 42,009,285Troy State University 32,989,567 1,184,098 2,486,079 1,108,156 37,767,900Troy State University Dothan 8,972,496 324,126 648,253 105,428 10,050,302Troy State University Montgomery 11,845,877 429,376 885,548 80,789 13,241,591University of Montevallo 15,847,673 559,325 1,118,650 1,244,443 18,770,092University of North Alabama 25,990,898 918,132 1,891,678 1,934,785 30,735,493University of West Alabama 13,052,965 463,755 927,511 1,134,624 15,578,855

Nondoctoral O&M Subtotal 177,626,826 6,275,830 12,831,746 9,031,784 205,766,186

Senior Subtotal 893,752,602 343,555,725 82,013,606 91,036,832 99,438,055 338,291 53,533,311 1,563,668,421

OtherAlabama A&M University Ag Resh & Ext - State Match 855,421 855,421

Alabama State University Title VI Lines 1,842,383 1,842,383 Master of Accountancy 120,532 8,342 8,342 4,198 141,414 BS- Health Information Management 333,511 24,043 24,043 1,694 383,291 BS-Occupational Therapy 411,028 29,084 29,084 2,541 471,738 MS-Physical Therapy 940,089 68,730 68,730 4,955 1,082,504 EdD Ed Leadership 2,003,841 3,926 2,007,767 Ph.D Microbiology TBD TBD

Subtotal Other 5,651,384 130,200 130,200 855,421 17,314 6,784,518

Total Senior Institutions 899,403,986 343,555,725 82,013,606 91,167,032 99,568,255 1,193,712 53,550,625 1,570,452,940

Alabama Southern Community College 3,951,147 391,987 4,343,134Bessemer State Technical College 3,590,203 450,328 4,040,531Bevill State Community College 12,252,339 997,933 13,250,272Bishop State Community College 12,434,229 4,848 1,029,224 13,468,301Calhoun Community College 14,201,605 1,113,304 15,314,909Central Alabama Community College 5,525,280 547,192 6,072,472Chattahoochee Valley Community College 5,000,643 188,395 5,189,038Drake State Technical College 2,127,702 214,203 2,341,905Enterprise-Ozark Community College 6,181,139 618,762 6,799,901Faulkner State Community College 7,836,878 369,833 8,206,711Gadsden State Community College 17,480,621 19,895 1,330,603 18,831,119Ingram State Technical College 2,366,547 270,230 2,636,777Jeff Davis Community College 4,374,596 450,475 4,825,071Jefferson State Community College 16,749,986 1,293,885 18,043,871Lawson State Community College 6,834,170 643,242 7,477,412L. B. Wallace Community College 4,494,830 472,164 4,966,994Northeast Alabama Community College 5,518,000 466,536 5,984,536Northwest-Shoals Community College 11,932,382 589,655 12,522,037Reid State Technical College 2,343,929 123,548 2,467,477Shelton State Community College 16,403,070 601,049 17,004,119Snead State Community College 5,136,599 493,979 5,630,578Southern Union State Community College 12,971,595 682,667 13,654,262Trenholm State Technical College 4,870,345 471,565 5,341,910Wallace - Dothan Community College 11,098,998 707,761 11,806,759Wallace - Hanceville Community College 13,899,419 1,007,550 14,906,969Wallace - Selma Community College 4,368,512 420,451 4,788,963Shelton State - Fire College 567,766 3,780,651 4,348,417

Two Year Institutions 214,512,530 3,805,394 15,946,521 234,264,445

Total All Institutions 1,113,916,515 343,555,725 82,013,606 91,167,032 103,373,649 1,193,712 69,497,146 1,804,717,384Categories have been adjusted to include Fringe Benefits.

A-8

Alabama Commission on Higher EducationFY 2005-2006 Unified Budget Recommendation

Public Institutions of Higher Education

Distributed by Major Category

FacilitiesPublic Renewal 2005-2006

INSTITUTION AP 1stProfHlth AES/CES Research Service Agric Allowance Recommendation(1) (2) (3) (4) (5) (6) (7) (8)

Alabama A&M University 31,868,504 737,245 940,223 294,665 1,788,660 35,629,297Alabama State University 26,288,670 1,809,347 1,847,631 1,486,579 31,432,227Auburn University 102,775,623 35,214,541 48,352,442 11,479,433 12,632,201 5,175,772 215,630,012University of Alabama 106,172,680 6,768,619 11,435,981 11,435,981 5,845,950 141,659,210University of Alabama at Birmingham 93,564,376 115,867,669 16,754,564 16,754,564 7,269,194 250,210,366University of Alabama in Huntsville 35,245,080 2,851,025 2,599,457 1,438,006 42,133,569University of South Alabama 49,382,798 34,075,681 5,437,392 5,442,111 4,295,435 98,633,417

Doctoral O&M Subtotal 445,297,732 191,926,510 48,352,442 50,504,985 51,652,168 294,665 27,299,596 815,328,098

Athens State University 9,263,105 327,292 654,583 418,707 10,663,687Auburn University Montgomery 19,253,814 661,824 1,397,431 1,113,937 22,427,006Jacksonville State University 29,236,736 1,018,312 2,036,623 1,356,623 33,648,294Troy State University 23,963,449 860,122 1,805,874 804,959 27,434,405Troy State University Dothan 6,227,669 224,971 449,942 73,176 6,975,758Troy State University Montgomery 7,060,261 255,912 527,796 48,151 7,892,120University of Montevallo 14,920,485 526,601 1,053,202 1,171,635 17,671,924University of North Alabama 21,134,338 746,574 1,538,207 1,573,259 24,992,377University of West Alabama 9,151,517 325,142 650,284 795,492 10,922,434

Nondoctoral O&M Subtotal 140,211,375 4,946,750 10,113,942 7,355,938 162,628,005

Senior Subtotal 585,509,107 191,926,510 48,352,442 55,451,735 61,766,110 294,665 34,655,535 977,956,103

OtherAlabama A&M University Ag Resh & Ext - State Match 855,421 855,421

Alabama State University Title VI Lines 1,842,383 1,842,383 Master of Accountancy 120,532 8,342 8,342 4,198 141,414 BS- Health Information Management 333,511 24,043 24,043 1,694 383,291 BS-Occupational Therapy 411,028 29,084 29,084 2,541 471,738 MS-Physical Therapy 940,088 68,730 68,730 4,955 1,082,504 EdD Ed Leadership 2,007,767 2,007,767 Ph.D Microbiology TBD TBD

Subtotal Other 6,510,731 130,200 130,200 13,388 6,784,518

Total Senior Institutions 592,019,837 191,926,510 48,352,442 55,581,935 61,896,310 294,665 34,668,923 984,740,621

Alabama Southern Community College 6,492,357 644,096 7,136,453Bessemer State Technical College 6,096,847 764,742 6,861,589Bevill State Community College 16,222,367 1,321,285 17,543,652Bishop State Community College 13,855,124 5,402 1,146,836 15,007,362Calhoun Community College 17,249,987 1,352,275 18,602,262Central Alabama Community College 7,139,279 707,033 7,846,312Chattahoochee Valley Community College 4,966,217 187,098 5,153,315Drake State Technical College 3,529,109 355,287 3,884,396Enterprise-Ozark Community College 7,869,245 787,750 8,656,995Faulkner State Community College 8,353,220 394,200 8,747,420Gadsden State Community College 20,909,558 23,798 1,591,609 22,524,965Ingram State Technical College 6,203,586 708,372 6,911,958Jeff Davis Community College 5,743,308 591,418 6,334,726Jefferson State Community College 21,627,600 1,670,666 23,298,266Lawson State Community College 8,391,995 789,867 9,181,862L. B. Wallace Community College 6,677,035 701,396 7,378,431Northeast Alabama Community College 5,275,217 446,009 5,721,226Northwest-Shoals Community College 10,894,183 538,351 11,432,534Reid State Technical College 4,152,550 218,880 4,371,430Shelton State Community College 17,004,238 623,077 17,627,315Snead State Community College 5,171,335 497,320 5,668,655Southern Union State Community College 12,645,444 665,502 13,310,946Trenholm State Technical College 9,399,952 910,138 10,310,090Wallace - Dothan Community College 14,895,500 949,856 15,845,356Wallace - Hanceville Community College 13,774,365 998,485 14,772,850Wallace - Selma Community College 6,483,491 624,009 7,107,500Shelton State - Fire College 728,573 4,851,434 5,580,007

Two Year Institutions 261,751,679 4,880,634 20,185,560 286,817,873

Total All Institutions 853,771,516 191,926,510 48,352,442 55,581,935 66,776,944 294,665 54,854,483 1,271,558,494Categories have been adjusted to include Fringe Benefits.

A-9


Public Institutions of Higher Education

Indices by Major Category

FacilitiesPublic Renewal 2005-2006

INSTITUTION AP 1stProfHlth AES/CES Research Service Agric Allowance Recommendation(1) (2) (3) (4) (5) (6) (7) (8)

Alabama A&M University 0.0250626 0.0005798 0.0007394 0.0002317 0.0014067 0.0280202Alabama State University 0.0206744 0.0014229 0.0014530 0.0011691 0.0247195Auburn University 0.0808265 0.0276940 0.0380261 0.0090278 0.0099344 0.0040704 0.1695793University of Alabama 0.0834981 0.0053231 0.0089937 0.0089937 0.0045975 0.1114060University of Alabama at Birmingham 0.0735824 0.0911226 0.0131764 0.0131764 0.0057168 0.1967746University of Alabama in Huntsville 0.0277180 0.0022422 0.0020443 0.0011309 0.0331354University of South Alabama 0.0388364 0.0267984 0.0042762 0.0042799 0.0033781 0.0775689

Doctoral O&M Subtotal 0.3501984 0.1509380 0.0380261 0.0397190 0.0406211 0.0002317 0.0214694 0.6412038

Athens State University 0.0072848 0.0002574 0.0005148 0.0003293 0.0083863Auburn University Montgomery 0.0151419 0.0005205 0.0010990 0.0008760 0.0176374Jacksonville State University 0.0229928 0.0008008 0.0016017 0.0010669 0.0264622Troy State University 0.0188457 0.0006764 0.0014202 0.0006330 0.0215754Troy State University Dothan 0.0048977 0.0001769 0.0003539 0.0000575 0.0054860Troy State University Montgomery 0.0055524 0.0002013 0.0004151 0.0000379 0.0062067University of Montevallo 0.0117340 0.0004141 0.0008283 0.0009214 0.0138978University of North Alabama 0.0166208 0.0005871 0.0012097 0.0012373 0.0196549University of West Alabama 0.0071971 0.0002557 0.0005114 0.0006256 0.0085898

Nondoctoral O&M Subtotal 0.1102673 0.0038903 0.0079540 0.0057850 0.1278966

Senior Subtotal 0.4604657 0.1509380 0.0380261 0.0436093 0.0485751 0.0002317 0.0272544 0.7691004

OtherAlabama A&M University Ag Resh & Ext - State Match 0.0006727 0.0006727

Alabama State University Title VI Lines 0.0014489 0.0014489 Master of Accountancy 0.0000948 0.0000066 0.0000066 0.0000033 0.0001112 BS- Health Information Management 0.0002623 0.0000189 0.0000189 0.0000013 0.0003014 BS-Occupational Therapy 0.0003232 0.0000229 0.0000229 0.0000020 0.0003710 MS-Physical Therapy 0.0007393 0.0000541 0.0000541 0.0000039 0.0008513 EdD Ed Leadership 0.0015790 0.0015790 Ph.D Microbiology TBD TBD

Subtotal Other 0.0051203 0.0001024 0.0001024 0.0000105 0.0053356

Total Senior Institutions 0.4655860 0.1509380 0.0380261 0.0437117 0.0486775 0.0002317 0.0272649 0.7744360

Alabama Southern Community College 0.0051058 0.0005065 0.0056124Bessemer State Technical College 0.0047948 0.0006014 0.0053962Bevill State Community College 0.0127579 0.0010391 0.0137970Bishop State Community College 0.0108962 0.0000042 0.0009019 0.0118023Calhoun Community College 0.0135660 0.0010635 0.0146295Central Alabama Community College 0.0056146 0.0005560 0.0061706Chattahoochee Valley Community College 0.0039056 0.0001471 0.0040528Drake State Technical College 0.0027754 0.0002794 0.0030548Enterprise-Ozark Community College 0.0061887 0.0006195 0.0068082Faulkner State Community College 0.0065693 0.0003100 0.0068793Gadsden State Community College 0.0164440 0.0000187 0.0012517 0.0177145Ingram State Technical College 0.0048787 0.0005571 0.0054358Jeff Davis Community College 0.0045167 0.0004651 0.0049819Jefferson State Community College 0.0170087 0.0013139 0.0183226Lawson State Community College 0.0065998 0.0006212 0.0072210L. B. Wallace Community College 0.0052511 0.0005516 0.0058027Northeast Alabama Community College 0.0041486 0.0003508 0.0044994Northwest-Shoals Community College 0.0085676 0.0004234 0.0089910Reid State Technical College 0.0032657 0.0001721 0.0034379Shelton State Community College 0.0133728 0.0004900 0.0138628Snead State Community College 0.0040669 0.0003911 0.0044580Southern Union State Community College 0.0099448 0.0005234 0.0104682Trenholm State Technical College 0.0073925 0.0007158 0.0081082Wallace - Dothan Community College 0.0117144 0.0007470 0.0124614Wallace - Hanceville Community College 0.0108327 0.0007852 0.0116179Wallace - Selma Community College 0.0050989 0.0004907 0.0055896Shelton State - Fire College 0.0005730 0.0038153 0.0043883

Two Year Institutions 0.2058511 0.0038383 0.0158747 0.2255640

Total All Institutions 0.6714371 0.1509380 0.0380261 0.0437117 0.0525158 0.0002317 0.0431396 1.0000000Categories have been adjusted to include Fringe Benefits.

A-10

SECTION B

HIGHER EDUCATION UNIFIED BUDGET RECOMMENDATION PROGRAM DETAIL:

FY 2003-2004 AND 2004-2005 APPROPRIATIONS

2005-2006 REQUESTS, ACHE STANDARD, AND RECOMMENDATION

This section presents the FY 2003-2004 and 2004-2005 Higher Education Appropriations and the 2005-2006 Alabama Commission on Higher Education (ACHE) Standard and Recommendation by Major Categories of the Unified Budget Recommendation process for each institution and statewide activity under the coordination of the Alabama Commission on Higher Education.

ALABAMA COMMISSION ON HIGHER EDUCATION2003-2004, 2004-2005 Appropriation, 2005-2006 Request, ACHE Standard, and Recommendation

2005-2006 2005-2006 ACHE2003-2004 2004-2005 2005-2006 ACHE Recommended

Appropriation Appropriation Request Standard Budget(1) (2) (3) (4) (5)

Alabama A&M University

Academic Program 25,667,498 27,428,249 37,802,923 36,586,740 31,868,504

Title VI Pgm. Enhancement 570,416

Desegregation Planning 173,442

Research 608,697 713,108 846,396 737,245

Public Service 805,708 697,037 1,079,427 940,223

Coop. Extension, Research and Services 338,291 294,665

ACES-System Personnel Costs 924,528 924,528 924,528

Ag Research Station Fixed Costs 300,000 300,000 300,000

Urban Affairs & NonTraditional Land Grt Program 2,211,755 2,432,931 2,676,224

Agri Research & Coop. Ext Matching* 855,421 855,421 3,044,199 855,421 855,421

Facilities Renewal Allowance 2,053,476 1,788,660

Total: Alabama A&M University 32,117,465 33,351,274 44,747,874 41,759,751 36,484,718

Court-Ordered Programs Electrical Engineering 731,903 Mechanical Engineering 370,333

Knight vs. Ala. Remedy** ** ** Title VI Trust for Excellence in Education

** Ordered by U.S. District Court for the Northern District of Alabama Southern Division due to Civil Action No. CV 83-M1676-S. Additional $1,000,000 possible based on state matching to endowment funds. FY 2003-2004 and 2004-2005 appropriation for this line included in the Knight vs. Alabama financial obligations line. The amounts shown above for the Court-Ordered Programs are also funded from the Knight vs. Alabama financial obligations line.NOTE: A&M/Miles Consortium - see state level private institutions.

* Additional funds to match the State direct portion of the Federal allocation are included in the line for the Alabama Agricultural Land Grant Alliance. The total amount allocated for FY 2004-2005 was $1,617,772. The total amount recommended for FY 2005-06 is $3,044,199.

B-1




Alabama State University


Title VI Pgm. Enhancement 1,657,477 1,657,477 1,657,477 1,657,477 1,657,477

Desegregation Planning 184,906 184,906 184,906 184,906 184,906

Research 1,725,642 1,755,971 2,049,138 1,809,347

Public Service 1,751,748 1,785,479 2,092,496 1,847,631


Total: Alabama State University 29,851,357 30,555,612 40,532,255 37,440,293 33,274,610

Court-Ordered Programs Master of Accountancy 115,406 131,185 141,414 141,414 BS-Health Information Management 437,843 402,407 383,291 383,291 BS-Occupational Therapy 447,864 426,891 471,738 471,738 MS-Physical Therapy 906,953 1,039,421 1,082,504 1,082,504 Ed.D. Educational Leadership 1,469,665 1,655,316 2,007,767 2,007,767 Ph.D Microbiology Knight vs. Ala. Remedy *

* Ordered by U.S. District Court for the Northern District of Alabama Southern Division due to Civil Action No. CV 83-M1676-S. Additional $1,000,000 possible based on state matching to endowment funds. FY 2003-2004 and 2004-2005 appropriation for this line included in the Knight vs. Alabama financial obligations line. The amounts shown above for the Court-Ordered Programs are also funded from the Knight vs. Alabama financial obligations line.Note: ASU also received $50,000 for the Intercollegiate Partnership Program in FY 03-04 which is not reflected in the numbers above.

B-2




Athens State University


Research 293,858 310,730 408,141 327,292

Public Service 587,716 621,460 816,281 654,583

Facilities Renewal Allowance 522,137 418,707

Knight v AL Minority Faculty Recruitment & Retention 100,000 100,000

Total: Athens State University 9,220,270 9,793,601 10,923,343 13,297,872 10,663,687

Auburn University System

Auburn University


First Professional Health 15,828,913 16,308,529 59,729,589 35,214,541

Research 7,681,038 7,913,928 19,470,985 11,479,433

Public Service 7,287,944 7,508,915 21,426,267 12,632,201

AAES/ACES 51,980,366 55,456,295 60,660,574 82,013,606 48,352,442



Subtotal: Auburn University 188,464,526 196,063,793 214,660,453 365,743,575 215,630,012

Note: AU also received $369,338 in FY 03-04 for the Alabama Technology Network which is not reflected in the numbers above.

B-3




Auburn University at Montgomery


Research 623,507 635,743 717,533 661,824

Public Service 1,350,179 1,352,196 1,515,059 1,397,431



Subtotal: Auburn Univ. at Montgomery 19,569,737 20,149,156 21,825,000 24,314,797 22,427,006

Auburn University System 208,034,263 216,212,949 236,485,453 390,058,372 238,057,018

Jacksonville State University


Research 944,087 984,731 1,271,344 1,018,312

Public Service 1,888,173 1,969,462 2,542,688 2,036,623



Total: Jacksonville State University 29,267,781 30,602,335 41,040,214 42,009,285 33,648,294

Note: JSU also received $31,658 for the Aeronautics for Aerospace Development Center in FY 03-04 which is not reflected in the numbers above.

B-4




Troy State University


Research 753,767 788,855 1,184,098 860,122

Public Service 1,564,419 1,648,998 2,486,079 1,805,874

Facilities Renewal Allowance 1,108,156 804,959


Subtotal: Troy State University 23,197,844 24,092,226 27,591,060 37,767,900 27,434,404

Troy State University Dothan


Research 197,198 203,975 324,126 224,971

Public Service 394,397 407,951 648,253 449,942



Subtotal: Troy State University Dothan 6,076,683 6,307,639 7,124,822 10,050,302 6,975,758

Note: Troy also received $84,420 for the SE AL Technology Network and $25,000 for the TSU/MacArthur Technical Consortium for Wiregrass Workforce Development in FY 03-04 which is not reflected in the numbers above.

B-5




Troy State University Montgomery


Research 219,543 227,170 429,376 255,912

Public Service 451,563 465,998 885,548 527,796



Subtotal: Troy State Univ. Montgomery 6,736,208 6,993,172 7,927,148 13,241,591 7,892,120

Total: Troy State University System 36,010,735 37,393,037 42,643,030 61,059,793 42,302,282

University of Alabama System

University of Alabama



Research 10,368,001 10,587,303 17,530,578 11,435,981

Public Service 10,368,001 10,587,303 17,530,578 11,435,981



Subtotal: University of Alabama 122,176,306 126,565,217 145,149,785 217,153,901 141,659,211

B-6




University of Alabama at Birmingham



Research 14,943,800 15,375,614 31,285,839 16,754,564

Public Service 14,943,800 15,375,614 31,285,839 16,754,564



Subtotal: Univ. of AL at Birmingham 216,280,535 222,473,405 255,223,962 467,218,446 250,210,367

University of Alabama in Huntsville


Research 2,646,639 2,721,811 4,468,273 2,851,025

Public Service 2,393,997 2,465,392 4,074,003 2,599,457



Subtotal: Univ. of AL in Huntsville 37,430,572 38,560,052 44,141,816 66,033,882 42,133,568

Total: University of Alabama System 375,887,413 387,598,674 444,515,563 750,406,229 434,003,146

NOTE: UAB also received $4,032,177 in FY 03-04 & 04-05 for Special Mental Health. In FY 03-04 the following funds were also received:UA SchoolFest Program ($140,772), UA AL Technology Network ($369,338), UA-Minority Tech Network ($189,945), UAB- Emergency Medicine Residency Program ($21,105), UAB-James Cystic Fibrosis Ctr ($44,555), and UAB-Holmes Grant to Brain Tumor Treatment ($44,555). These amounts are not reflected in the numbers above.

B-7




University of Montevallo


Research 499,300 513,034 559,325 526,601

Public Service 998,600 1,026,068 1,118,650 1,053,202



Total: University of Montevallo 15,406,582 15,869,700 18,171,536 18,770,092 17,671,923

University of North Alabama


Research 699,262 724,501 918,132 746,574

Public Service 1,413,763 1,463,938 1,891,678 1,538,207



Total: University of North Alabama 21,769,653 22,425,293 23,395,314 30,735,493 24,992,378

B-8




University of South Alabama



Research 4,950,961 5,126,105 9,109,794 5,437,392

Public Service 4,960,217 5,132,432 9,117,701 5,442,111



Total: University of South Alabama 84,080,942 86,621,887 93,958,879 165,250,192 98,633,417

University of West Alabama

Academic Program 8,576,755 8,906,303 12,933,550 13,052,965 9,151,517 Research 310,139 321,116 463,755 325,142

Public Service 620,277 642,232 927,511 650,284

Facilities Renewal Allowance 1,134,624 795,492


Total: University of West Alabama 9,607,171 9,969,651 12,933,550 15,578,855 10,922,435

GRAND TOTAL: SENIOR INSTITUTIONS* 855,733,599 884,049,233 1,009,347,011 1,570,452,941 984,740,622

* Grand Total includes Court Ordered Programs for Alabama A&M University and Alabama State University.

B-9




Total Community & Technical Academic Program 232,102,336 245,037,364 269,504,554 205,964,577 254,102,354 Deferred Maintenance 3,320,000 Facilities Renewal Allowance 15,946,521 20,172,609 Knight v AL Minority Faculty Recruitment & Retention 100,000 100,000Total Community & Technical 232,202,336 245,137,364 272,824,554 221,911,098 274,274,963

Prison Education Project 8,004,930 8,004,930 8,004,930 8,004,930 8,004,930

Alabama Fire College 4,034,843 4,348,417 4,460,321 4,348,417 4,537,981

Total: Two Year Institutions 244,242,109 257,490,711 285,289,805 234,264,445 286,817,874

* See page B-12 for the ACHE 2005-2006 Recommendation for the Community and Technical colleges by institution.

B-10




STATE LEVEL HIGHER EDUCATION PROGRAMS

Other Two-Year

Postsecondary Education Department 3,324,075 3,636,923 3,806,197 3,806,197

Adult Basic Education 5,790,329 6,433,111 11,433,111 6,773,423

Alabama Ind. Devel. Trng. Inst. 6,657,087 6,587,546 7,087,546 6,936,027

C.I.T.Y Program 4,291,273 4,431,273 4,844,252 4,665,687

Subtotal: Other Two-Year 20,062,764 21,088,853 27,171,106 22,181,334

Other Higher Education

MESC/Dauphin Island Sea Lab 2,839,173 2,919,846 3,802,969 3,074,306

Private Colleges & Schools *Marion Military Institute 144,997 217,496 359,692 229,002 **Talladega College 242,504 363,756 363,756 363,756 **A&M/Miles Consortium 173,436 173,436 173,436 173,436

State-Related Institution Tuskegee University 2,363,230 4,726,460 21,495,608 4,976,490

Total: Private & State-Related Institutions 2,924,167 5,481,148 22,392,492 5,742,683

Medical Scholarships Board 98,924Bd. of Dental Schol. Awards 45,716Bd. of Optometric Schol. Awards 21,772

Subtotal: Other Higher Education 5,929,752 8,400,994 26,195,461 8,816,989

* 70% of Appropriation and Request is shown. The remaining 30% is allocated to K-12 Appropriation. Total requested for 2005-2006 is $513,845.** Talladega College and the A&M/Miles College Consortium did not request any increases over what was received in FY 04-05.

B-11





Planning & Coordination Services 2,316,937 2,322,691 2,552,637 2,552,637

Articulation Program 330,000 330,000 450,000 450,000 SREB 713,471 713,471 845,000 845,000 Network of AL Academic Libraries 319,655 319,655 1,500,000 1,500,000 EPSCOR 481,139 481,139 600,000 600,000 Governor's Comm./Hist. Black Coll/Univ 22,278 Small Business Develop. Consortium 101,842 Subtotal: Statewide 1,968,385 1,844,265 3,395,000 3,395,000

Chiropractic Scholarships 8,017 AL National Guard Schol. Prog. 675,143 675,143 675,143 675,143 AL Student Assistance Program 820,558 820,558 2,652,707 2,652,707 AL Educational Grant Program (ASGP) 1,768,471 1,768,471 884,235 884,235 Police and Fire Fighters' Survivors Tuition 95,880 95,880 95,880 95,880 Subtotal: Student Aid 3,368,069 3,360,052 4,307,965 4,307,965

Alabama Agricultural Land Grant Alliance 1,624,702 2,024,702 6,000,000 6,000,000

Total: ACHE and Statewide Pgms. 9,278,093 9,551,710 16,255,602 16,255,602

SUBTOTAL: ALL STATE LEVEL PGMS. 35,270,609 39,041,557 69,622,169 47,253,925 Knight vs. AL Financial Obligations (excluding Court-Ordered Pgms & Minority Recruitment & Retention Line) 8,736,388 8,759,679 8,759,679

TOTAL SENIOR, TWO YEAR & STATE LEVEL 1,143,982,705 1,189,341,180 1,364,258,985 1,804,717,386 1,327,572,100

Note: Additional funds for programs which have been previously funded and which are related to higher education but for which the Commission on Higher Education has no direct function or adequate information have not been included in the numbers above. The amounts for these programs in FY 03-04 adds to $23,554,074 and $20,203,026 in FY 04-05. The Commission makes no recommendation on funding for these programs.

B-12


Alabama Public Community, and Technical Colleges

Facilities FY 2005-2006Academic Public Renewal Unified Budget

Institution Program Service Allowance Recommendation

Alabama Southern Community College 6,492,357 644,096 7,136,453Bessemer State Technical College 6,096,847 764,742 6,861,589Bevill State Community College 16,222,367 1,321,285 17,543,652Bishop State Community College 13,855,124 5,402 1,146,836 15,007,362Calhoun Community College 17,249,987 1,352,275 18,602,262Central Alabama Community College 7,139,279 707,033 7,846,312Chattahoochee Valley Community College 4,966,217 187,098 5,153,315Drake State Technical College 3,529,109 355,287 3,884,396Enterprise-Ozark Community College 7,869,245 787,750 8,656,995Faulkner State Community College 8,353,220 394,200 8,747,420Gadsden State Community College 20,909,558 23,798 1,591,609 22,524,965Ingram State Technical College 6,203,586 708,372 6,911,958Jeff Davis Community College 5,743,308 591,418 6,334,726Jefferson State Community College 21,627,600 1,670,666 23,298,266Lawson State Community College 8,391,995 789,867 9,181,862L. B. Wallace Community College 6,677,035 701,396 7,378,431Northeast Alabama Community College 5,275,217 446,009 5,721,226Northwest-Shoals Community College 10,894,183 538,351 11,432,534Reid State Technical College 4,152,550 218,880 4,371,430Shelton State Community College 17,004,238 623,077 17,627,315Snead State Community College 5,171,335 497,320 5,668,655Southern Union State Community College 12,645,444 665,502 13,310,946Trenholm State Technical College 9,399,952 910,138 10,310,090Wallace - Dothan Community College 14,895,500 949,856 15,845,356Wallace - Hanceville Community College 13,774,365 998,485 14,772,850Wallace - Selma Community College 6,483,491 624,009 7,107,500Shelton State - Fire College 728,573 4,851,434 5,580,007

Two Year Institutions 261,751,679 4,880,634 20,185,560 286,817,873Categories have been adjusted to include Fringe Benefits.

B-13

SECTION C

FUNDING FORMULAS

AND UNIFIED BUDGET RECOMMENDATION PROCESS

This section describes the various funding formulas used by the Alabama Commission on Higher Education in arriving at a statement of the level of funding required to achieve the appropriate ACHE Standard for the institutional elements of the Higher Education Budget and the processes used in the construction of the ACHE Standard for Alabama higher education funding.

C-1

Overview of ACHE Standard Formula

Formula Components: (1) Academic Program Calculation (Senior Institutions)

Cost of Instruction and departmental operating expenses Multiplier a) Unit instructional Cost (For general studies-average regional faculty salaries divided by assumed

productivity adjusted for inflation) b) Departmental Operating Expenses (overhead and administration)

The multiplier times weighted Semester Credit Hours (Academic weights to reflect cost differences in program mix and instruction level) equals total cost of instruction

Academic Support (5% of estimated cost of instruction and operating expenses)

Research (2% of sum of estimated cost of instruction, operating expenses & academic support)

Sponsored Research (5% of qualifying research)

Public Service (2% of sum of estimated cost of instruction, operating expenses & academic support)

Library Support (Actual unweighted semester hours, less military science, times cost factor) General Administration & Student Services (set amounts based on headcount enrollment)

Physical Plant & Custodial Services (gross square feet multiplied by cost factor) General Institutional Support (14% of items above)

Utilities O&M Allowance (calculations are based on consumption rates for heating, electricity, and other utilities and gross square educational and general floor area)

Less—Tuition adjustment (90% of weighted average credit hour charge multiplied by 3-year average unweighted credit hours—court ordered exceptions include ASU and AAMU)

Utilities Capital Allowance (5-yr amortized expenditures for major repairs and replacement)

1st Professional Health (medicine, optometry, dentistry, veterinary medicine, pharmacy & teaching hospitals)

(2) Other Components of ACHE Standard Calculations (Senior Institutions):

Agricultural Experimentation and Extension (Auburn University-prior year ACHE standard calculation times 3%) Organized Research (8% of Academic Program Research Component for doctoral institutions and 4% for non-doctoral institutions) Public Service (8% of Academic Program Public Service Component) Facilities renewal and replacement (based on volume of physical space, its construction and age, use and nationally estimated engineering rates for renovation and replacement) Fringe Benefits (Social Security (FICA), Retirement (TRSA) and PEEHIP (Health Insurance of prior year actual expenditures—Two-Year colleges) Title VI Knight v. State of Alabama Court ordered funding (Desegregation)

(3) Two Year College ACHE Standard Calculations: (plus facilities renewal and fringes)

Community College = median SREB appropriation per FTE times 3-Yr Average Fall FTE Technical College = Adjusted Expense Rate times 3-Yr Average Fall FTE

Adjusted expense rate is based on average faculty salaries, student:faculty ratio, program support expense adjustment and tuition adjustment

C-2

EXPLANATION OF ACHE FUNDING PROCESS FOR HIGHER EDUCATION The Alabama Commission on Higher Education's recommendations for the funding of Postsecondary education are based on several types of assessment: - A set of formulas, which relate funding needs for the academic programs of the senior and junior institutions to student credit hours, faculty productivity, and faculty salaries. - Facilities Renewal Allowance is an estimation of the amount of money needed to provide for the aging of all building elements in a given year. - Updated values for ongoing research and service activities and for other instructional activities which are not susceptible to "formula" determination, derived from earlier funding levels. - Analysis of funding needs for new programs and major changes in existing programs based on estimated expenditures and revenues. Academic Program Formula - Universities The calculation of the Academic Program multiplier is predicated in the estimated National Association of State Universities and Land-Grant Colleges (NASUGLC) regional General Studies average salary for doctoral and regional institutions. A multiplier is determined from regional faculty salaries adjusted by an estimated departmental expense rate. The multiplier uses an assumed faculty productivity factor of 630 student credit hours (SCH) annually for doctoral institutions and 585 SCH for nondoctoral institutions. These productivity factors imply a General Studies faculty: student ratio of 1:26 for doctoral institutions and 1:24 for regional institutions. The computations for FY 2005-2006, for the senior institutions, are shown on page C-7. The amounts calculated above are distributed to institutions according to a formula consisting of the sum of the following elements: (a) Weighting Factors (b) Other Cost Factors.

CLASSIFICATION OF INSTRUCTIONAL PROGRAMS (CIP) CODESAND WEIGHT CATEGORIES USED IN

ALABAMA ACADEMIC PROGRAM FORMULA

Academic Complexity WeightsAcademic Program Undergraduate Upper GraduateFormula Category Discipline LwrDiv UprDiv Level Level 1 Level 2 Residency

1 Business 08. Marketing Operations/Marketing and Distribution 0.95 1.29 1.29 3.27 13.4525. Library Science31. Parks, Recreation, Leisure and Fitness Studies43. Protective Services44. Public Administration and Services52. Business Management and Administrative Services

2 General Studies 05. Area, Ethnic and Cultural Studies 0.85 1.15 1.67 2.73 10.3309. Communications10. Communications Technologies16. Foreign Languages and Literatures23. English Language and Literature/Letters27. Mathematics38. Philosophy and Religion42. Psychology45. Social Sciences and History

3 Education 13. Education 0.88 1.20 1.20 2.30 8.79

4 Health Professions & Rel. Sciences 51. Health Professions and Related Sciences 2.33 3.15 3.15 5.82 17.60 (Excludes First Professional Health)

5 Engineering/Architect 04. Architecture and Related Programs 1.76 2.38 2.38 5.46 17.6014. Engineering15. Engineering-Related Technologies

6 Fine Arts 48. Precision Production Trades 1.78 2.40 2.71 4.95 17.7150. Visual and Performing Arts

7 Home Economics 19. Home Economics 1.18 1.60 1.67 3.34 9.3120. Vocational Home Economics

8 Science 11. Computer and Information Sciences 1.10 1.48 2.11 5.36 17.6026. Biological Sciences/Life Sciences40. Physical Sciences41. Science Technologies

9 Military Science 28 Reserve Officers' Training Corps 0.10 0.14 0.14

(Table continued.)

C-3

CLASSIFICATION OF INSTRUCTIONAL PROGRAMS (CIP) CODESAND WEIGHT CATEGORIES USED IN

ALABAMA ACADEMIC PROGRAM FORMULA

Academic Complexity WeightsAcademic Program Undergraduate Upper GraduateFormula Category Discipline LwrDiv UprDiv Level Level 1 Level 2 Residency

10 Law 22. Law and Legal Studies 2.31

11 Agriculture 01. Agricultural Business and Production 1.28 1.74 1.74 4.57 16.0302. Agricultural Sciences03. Conservation and Renewable Natural Resources

12 Veterinary Medicine 51.25 Veterinary Medicine 20.53

13 Pharmacy 51.2001 Pharmacy 2.57 3.47 5.06 19.01

14 Interdisciplinary 24. Liberal Arts and Sciences, General Studies and Humanities 1.07 1.45 1.45 3.23 10.3330. Multi/Interdisciplinary Studies

First Professional Health Medicine (M.D.) - UAB & USA 5.36 19.00 19.00 Medicine (M.D.) - UA 5.36 17.60 17.60 Dentistry (D.D.S., D.M.D.) 5.36 19.00 19.00 Optometry (O.D.) 5.36 19.00 19.00 Veterinary Medicine (D.V.M.) 5.36 19.00 19.00 Pharmacy (Pharm.D.) 5.36 17.60

15 Not Funded for Senior Colleges 12. Personal and Miscellaneous Services21 Technology Education/Industrial Arts29. Military Technologies32 Basic Skills33 Citizenship Activities34 Health-Related Knowledge and Skills35 Interpersonal and Social Skills36 Leisure and Recreational Activities37 Personal Awareness and Self-Improvement39. Theological Studies and Religious Vocations46. Construction Trades47. Mechanics and Repairers49. Transportation and Material Moving Workers

SOURCE: U. S. Department of Education, Office of Educational Research and Improvement, Center for Education Statistics, A Classification of Instructional Programs (CIP) and Alabama Commission on Higher Education.

C-4

CALCULATION OF ACADEMIC PROGRAM MULTIPLIERFORMULA YEAR 2005-2006

General StudiesSalary National Salaries CUPA / Cumul.Year NASULGC CUPA NASULGC Average2003-04 69,120 59,040 0.8542 0.87772002-03 67,927 58,089 0.8552 0.89002001-02 65,766 57,129 0.8687 0.90252000-01 61,528 55,883 0.9083 0.90831999-00 61,724 55,677 0.9020 0.9040

NASULGC Infl. Adj'd Region IVSalary Region IV Inflation Region IV EstimatedYear General Studies Factors Estimated Multiplier2003-04 62,789 1.0506 65,967 125.652002-03 61,690 1.0384 64,056 122.012001-02 60,225 1.0343 62,290 118.652000-01 57,318 1.0609 60,808 115.821999-00 55,813 1.0496 58,581 111.58

Source: 2003-2004 National Faculty Salary Survey by Discipline and Rank in Four-Year Collegesand Universities, College and University Professional Association for Human Resourcesand 2003-2004 Faculty Salary Survey by Discipline, Office Institutional Research,Information Technology Division, Oklahoma State University.

Notes: A. Multiplier equals Region IV inflation-adjusted salary divided by productivity of 630 semester credit hours, plus 20% of salary cost added for Departmental Operating Expense. Multipliers are based on salaries two-years prior to formula year, adjusted for inflation.

B. Multiplier applied to nondoctoral is weighted by the average ratio of CUPA to NASULGC national salaries times the ratio of doctoral productivity (630 SCH) to nondoctoral productivity (585 SCH).

C-5

Estimation of General Studies Average SalaryDoctoral and Nondoctoral Institutions

2003-2004

CUPA - 2003-2004

CIP Category Avg Salary Number Total SalaryArea, Ethnic & Cultural Studies 63,645 616 39,205,320Communications, Journalism & Related Pgms 55,342 3,007 166,413,394Communications Technologies 58,432 80 4,674,560Foreign Languages & Literatures 54,306 3,764 204,407,784English Lang. & Lit.\Letters 53,467 8,425 450,459,475Mathematics & Statistics 61,489 6,164 379,018,196Philosophy & Religion 60,410 1,729 104,448,890Psychology 62,467 4,610 287,972,870Social Sciences 63,275 9,161 579,662,275History 59,334 3,583 212,593,722

General Studies 59,040 41,139 2,428,856,486

NASULGC - 2003-2004

CIP Category Avg Salary Number Total SalaryArea, Ethnic & Cultural Studies 66,243 778 51,537,054Communications 62,194 1,739 108,155,366Communications Technologies - - -Foreign Languages & Literatures 60,114 3,711 223,083,054English Lang. & Lit.\Letters 63,746 4,632 295,271,472Mathematics 74,220 4,064 301,630,080Philosophy & Religion 65,039 1,198 77,916,722Psychology 74,023 2,535 187,648,305Social Sciences & History 73,959 9,162 677,612,358

General Studies 69,120 27,819 1,922,854,411

NASULGC REG IV- 2003-2004

CIP Category Avg Salary Number Total SalaryArea, Ethnic & Cultural Studies 60,442 73 4,412,266Communications 58,620 507 29,720,340Communications Technologies - - -Foreign Languages & Literatures 53,596 869 46,574,924English Lang. & Lit.\Letters 55,030 1,264 69,557,920Mathematics 69,236 1,108 76,713,488Philosophy & Religion 60,591 385 23,327,535Psychology 67,167 682 45,807,894Social Sciences & History 68,233 1,983 135,306,039

General Studies 62,789 6,871 431,420,406Source: 2003-2004 National Faculty Salary Survey by Discipline and Rank in Four-Year Colleges and Universities,

College and University Professional Association for Human Resources and 2003-2004 Faculty Salary Surveyby Discipline, Office Institutional Research, Information Technology Division, Oklahoma State University.

C-6

C-7

Senior Institutions 1. Instruction: The three-year average of actual on-campus weighted semester credit hours for 2001-2002, 2002-2003, and 2003-2004 is applied to the instructional multiplier. The instructional multiplier is 125.65. Remedial credit hours receive an additional 115% increment. 2. Academic Support: 5% of the amount generated for instruction. 3. Research: 2% of combined amounts for instruction and academic support plus 5% of 2002-2003 sponsored research. 4. Public Service: 2% of combined amounts for instruction and academic support. 5. Library Support: Actual on-campus unweighted semester credit hours (except military science) corresponding to the weighted credit hour value multiplied by the following cost factors: Undergraduate

$10.21

Graduate I (Masters)

20.52

Graduate II (Doctoral)

87.85

Law

54.19

6. General Administration and Student Services (GA/SS): For institutions with total approved campus headcount enrollment of less than 4,000: 1 to 2,000 Headcount

$1,254.83

2,001 to 2,999 Headcount

660.44


297.01

For institutions with total approved headcount enrollment of 4,000 or greater: First 4,000 Headcount

$517.56


387.61

Over 8,000 Headcount

348.63

C-8

The GA/SS amount is computed based on total approved headcount, then distributed proportionately among the GA/SS components of the formula funded lines of the institution.

Example: Total Approved Headcount 4,000

Main-Campus Headcount

3,800

Approved Branch Campus Headcount

200

Total GA/SS = 4,000 x 517.56 = $2,070,240.

Main-Campus: 3,800 x 2,070,240 = $1,966,728

4,000

Approved Branch Campus 200 x 2,070,240 = $103,512

4,000

7. Maintenance of Physical Plant and Custodial Services: Gross square feet (GSF) as of June 30, 2004, multiplied by $5.23. 8. General Institutional support: 14% of total amount generated in items 1-7. 9. Utilities: This calculation is a combination of two different calculations. The first calculation uses the highest annual consumption rate per gross square foot of E & G floor area for the last three years (July-June, 2001-02, 2002-03, and 2003-04) for heat energy and electrical energy multiplied by projected rates per energy units for 2004-05. The "other" utilities input (water, sewage, and solid waste disposal) is calculated by multiplying the actual rate of consumption per gross square foot of E & G floor area for 2003-04 by a projected rate per energy unit for 2004-05. The projected escalation factors for heating fuel, electricity and other utilities are the same as the inflation factors that were used throughout the calculation of the AP (1.027 and 1.023). The second set of calculations are made using a statewide standard, which is based on the average annual consumption rates for heating, electricity, and for other utilities combined. The standard consumption rates are then applied to the projected rates of costs for each institution. The gross E & G floor area as of June 30, 2004 is then multiplied against the higher of these two calculations.

C-9

10. Tuition Adjustment: A weighted average credit hour charge was calculated, using 2004-05 tuition and required fees and three-year average unweighted credit hours. Ninety percent (90%) of that rate multiplied by the three-year average of unweighted credit hours (excluding Military Science) is the tuition deduction for all institutions except Alabama A&M University and Alabama State University. For those institutions, ninety percent (90%) of their actual weighted credit hour charge is used for the tuition deduction. For the 2005-2006 formula, the weighted per-credit-hour tuition deductions are: General

$139.74

Alabama A&M University

141.08

Alabama State University

125.08

C-10

Additional Components added after the Academic Program Formula calculation in order to determine the ACHE Standard The Academic Program Formula provides only a portion of the funds needed to carry out the assignments of Alabama public colleges and universities. Additional components of funding are added to the Academic Program Formula to cover these needs. These needs include organized research and public service (the historic “line item” activities), facilities renewal, and funds to cover Social Security and Retirement and additional funds for health insurance for the two-year institutions. Organized Research and Public Service Doctoral institutions receive an additional eight percent (8.0%) and nondoctoral institutions receive four percent (4.0%) of the amount they received from the academic program formula for Research. All four-year institutions receive eight percent (8.0%) of instructional costs for Public Service. Facilities Renewal Allowance The Facilities Renewal Allowance is calculated from a detailed formula based on the volume of physical space, construction, age and use (office, classroom, lab, etc.). Nationally estimated engineering rates for renovation and replacement are used to determine the costs factors. (Page C-16) Fringe Benefits Social Security (or FICA), and Retirement (TRSA), and PEEHIP (Health Insurance), are included at the reported actual expenditures of the previous year. All of these needs, in composite, are referred to as the ACHE Standard.

Community College Funding NeedsAlabama Public Institutions

Fiscal Year 2005-2006

FTE STATE APPROPRIATIONS ENROLLMENT $/FTE

ALABAMA 211,651,461 63,823 3,316ARKANSAS 137,752,345 35,167 3,917DELAWARE 45,939,300 9,143 5,025FLORIDA 884,127,338 294,380 3,003GEORGIA 170,189,792 45,532 3,738KENTUCKY 182,303,600 35,843 5,086LOUISIANA 87,380,218 28,821 3,032MARYLAND 204,906,896 68,387 2,996MISSISSIPPI 154,977,799 56,328 2,751NORTH CAROLINA 590,754,902 209,899 2,814OKLAHOMA 138,782,446 46,914 2,958SOUTH CAROLINA 140,951,285 64,085 2,199TENNESSEE 190,561,900 52,701 3,616TEXAS 1,028,045,855 390,614 2,632VIRGINIA 261,024,476 93,576 2,789WEST VIRGINIA 43,012,664 11,324 3,798

SREB COHORTS AVERAGE 4,472,362,277 1,506,537 3,355 W/O ALABAMA 3,357Source: SREB Data Exchange, 2003-2004 (preliminary data)

Technical Colleges Funding NeedsAlabama Public Institutions

Fiscal Year 2005-2006

AVERAGE FACULTY SALARY 2003-2004 44,977

INFLATION FACTOR 1.0506 47,254

PROJECTED INSTR'L EXP/FTE 3,150

PROJECTED TOTAL EXP (DIVIDE BY .6) 5,250

TUITION ADJUSTMENT (2,430)

ADJUSTED EXP PER FULL-TIME STUDENT 2,820

The funding rate per FTE student of the Southern Regional Education Board (SREB) states iscalculated. The rate is multiplied by the Alabama Community College three-year average FallFTE enrollment to produce a total which approximates the amount funded at the average ofthe SREB states.

Total funding needs for the Alabama technical colleges are estimated by calculating theaverage salary (9 months) for technical college faculty, applying a standard student: facultyratio (15:1) to determine instructional salary expense per student FTE, and multiplying thisrate by the three-year average Fall FTE enrollment.

C-11

CALCULATION OF PROGRAM FUNDING AT SREB STANDARDSALABAMA PUBLIC TWO YEAR COLLEGES

FISCAL YEAR 2005-2006

Three-Year Fall Average Credit Hours Academic Programs At 2005-2006 StandardJunior/Tnsfr Technical Prison Prison

Regular Regular Jr/Transfer Technical Junior Technical Junior Technical Total(a) (b) (c) (d) (e) (f) (g) (h) (i)

Alabama Southern 10,949 2,406 2,450,386 452,328 2,902,714Bessemer 12,783 2,403,204 2,403,204Bevill State CC 29,754 14,182 6,658,945 2,666,216 9,325,161Bishop 34,602 9,148 7,743,928 1,719,824 9,463,752Calhoun 40,131 5,735 2,206 8,981,318 1,078,180 414,728 10,474,226Central Alabama 16,456 2,632 3,682,853 494,816 4,177,669Chattahoochee 18,008 649 4,030,190 122,012 4,152,202Drake 7,904 1,485,952 1,485,952Enterprise-Ozark CC 15,821 5,676 3,540,740 1,067,088 4,607,828Faulkner 24,628 3,097 5,511,746 582,236 6,093,982Gadsden 40,882 20,314 1,270 9,149,392 3,819,032 238,760 13,207,184Ingram 7,406 1,392,328 1,392,328Jeff Davis 10,959 1,057 3,562 2,452,624 198,716 669,656 3,320,996Jefferson State 55,248 2,098 12,364,502 394,424 12,758,926Lawson 17,735 3,923 1,568 3,969,093 737,524 294,784 5,001,401L. B. Wallace 9,684 5,701 2,167,279 1,071,788 3,239,067Northeast 18,956 904 4,242,353 169,952 4,412,305Northwest Shoals 37,121 7,235 8,307,680 1,360,180 9,667,860Reid 7,975 1,499,300 1,499,300Shelton 50,609 9,313 11,326,294 1,750,844 13,077,138Snead 17,746 593 3,971,555 111,484 4,083,039Southern Union 45,058 3,368 10,083,980 633,184 10,717,164Trenholm 16,479 3,098,052 3,098,052Wallace - Dothan 28,802 7,178 2,355 6,445,888 1,349,464 442,740 8,238,092Wallace - Hanceville 41,904 9,145 9,378,115 1,719,260 11,097,375Wallace - Selma 11,553 3,641 2,585,561 684,508 3,270,069

TOTAL 576,606 163,136 18,367 129,044,423 30,669,568 3,452,996 163,166,987* Note: Recommended funding calculations based on $3,357 per FTE for Junior/Community Colleges and $2,820 per FTE for Technical Colleges, as calculated from SREB Data Exchange, 2003-04 (preliminary data).

C-12

C-13

Facilities Renewal Requirements Basis of Estimates: In its Unified Budget Recommendations for the last several budget years, the Alabama Commission on Higher Education included funding, to be provided from nonrecurring revenues, for the renewal of facilities. The amount recommended for each institution is an estimate of the amount of money needed to provide for the aging of all building elements in a given year. The method used by the Commission staff to estimate facilities renewal needs is not as precise as a carefully prepared engineering estimate based on detailed facilities inspections. However, until each institution has thoroughly documented its entire requirement for repair and renovation, a detailed engineering estimate cannot be prepared and the process followed by the staff provides a consistent and realistic estimate of needs. The rationale behind the process is as follows: (1) The incidence of major repair and the need for general renovation of a building increase with its age, and the relationship is generally skewed toward the older, unrenovated facilities. (2) Different elements of a building wear out or become obsolete at different ages. For example, foundations and principal elements of the superstructure are essentially permanent. Exterior walls, plumbing, and lighting have expected life of 40 to 50 years. Roofs and air conditioning should last 20 to 25 years. Interior surfaces require reworking in 10 years or less. (3) Different types of buildings, even though constructed to similar standards of quality and of similar materials, are comprised of different combinations ("mixes") of elements, and the cost of replacing or renovating each type depends on the mix and the cost per square foot of each element. (4) The "renewal allowance" of a building is defined as the amount that should be budgeted in any year to provide for the aging of all elements of that building. The "renewal backlog" of a building is defined as the summation of all the years' renewal allowances to date, for that building, from its initial completion (or latest complete renovation) and is a measure of the total amount that should be spent to bring the building to essentially new condition. The renewal allowances and backlogs are estimated by multiplying the sums of maximum renewal costs for each 25-year and 50-year element by factors reflecting the age of the building elements.

C-14

Attachment 1 summarizes maximum renewal costs, at 2004 construction cost levels, for 50-year and 25-year elements, for different types of college and university buildings, derived from the 2004 Means Square Foot Costs. These construction costs were then adjusted using a regional cost factor of .80. Elements normally requiring reworking or replacement in less than 20 to 25 years (e.g. wall finishes) are not included in renewal costs, on the basis that these elements are dealt with in the course of regular maintenance. Procedure for Calculating Renewal Allowances and Backlogs Renewal Allowances and Renewal Backlogs are calculated as follows: (1) Calculate the current replacement value of each 50-year and 25-year element of each major campus building according to Attachment 1 and determine the Maximum Renewal Allowance for each facility as follows: (a) 50-year Elements: Maximum Renewal Allowance is the sum of the current replacement costs of 50-year elements. (b) 25-year Elements: Maximum Renewal Allowance is the sum of the current replacement costs of the 25-year elements. (2) Calculate the "adjusted age" of the 50-year and 25-year elements for each building that has undergone renovation since its construction (up to 50 and 25 years respectively), as follows: (a) 50-year Elements - Multiply the proportion of the building area renovated by the time elapsed since each renovation. Multiply the proportion not renovated (i.e. one minus the proportion renovated) by the age of the building up to and including 50 years. The sum of the two (or more) products equals the adjusted age of the 50-year elements. (b) 25-year Elements - Multiply the proportion of the building area renovated by the time elapsed since each renovation. Multiply the proportion not renovated by the age of the building, up to and including 25 years. The sum of the two (or more) products equals the adjusted age of the 25-year elements. (3) Calculate the current year Renewal Allowance for each facility as follows: (a) 50-year Elements - Divide the building age (actual or adjusted), up to and including 50 years, by 1,275 (the sum of the years digits from 1 to 50). Multiply the quotient by the Maximum Renewal Allowance for 50-year elements and this product by the gross building area. (b) 25-year Elements - Divide the building age (actual or adjusted), up to and including 25 years, by 325 (the sum of the years digits from 1 to 25). Multiply the quotient by the Maximum Renewal Allowance for 25-year elements and this product by the gross building area.

C-15

(c) Add products (a) and (b). (4) Calculate a 50-year element renewal factor and a 25-year renewal factor for each facility as follows. (a) 50-year Elements - Sum the numbers from 1 to the current (actual or adjusted) age of the building (up to 50 years) and divide by 1,275. 1 + 2 + 3 + ---------- + Current Age F 50 = ------------------------------------------- 1 + 2 + 3 + ---------- + 49 + 50 (b) 25-year Elements - Sum the numbers from 1 to the current (actual or adjusted) age of the building (up to 25 years) and divide by 325. 1 + 2 + 3 + ---------- + Current Age F 25 = ------------------------------------------- 1 + 2 + 3 + ---------- + 24 + 25 (5) Calculate the Renewal Backlog for each building as follows: Renewal Backlog = (50-year renewal factor) x (50-year Maximum Renewal Allowance) + (25-year renewal factor) x (25-year Maximum Renewal Allowance). (6) Sum the calculated current year Renewal Allowances and Renewal Backlogs for all campus facilities broken down by funding category (e.g. E&G, Auxiliary, Health Professions, etc.). The sum of the Renewal Backlogs represents current total renovation backlog. The sum of the current year Renewal Allowances will be the amount that should be appropriated for facility renewal for the current year. Attachment 2 summarizes Renewal Allowances and Renewal Backlogs for all Alabama public postsecondary institutions of higher education, based on the Fall 2003 Facility Inventory, 2004 Space Data Reports and 2004 construction cost data. References 2004 RS Means® Square Foot Costs, 26th Annual Edition, R. S. Means Company, Inc. Construction Publishers & Consultants, Kingston, MA, 2004.

ATTACHMENT 1

BUILDING REPLACEMENT COSTS: RENEWAL COSTS BY SYSTEMS - 2004

STUDENT UTIL MEDICALSYSTEM CLRM/ADM LAB VOC SCHL LIBRARY GYM SW POOL AUDITORIUM CENTER PLANT SHOP CLINIC HOSPITAL RESIDENCE DORMITORY OTHER

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15)

50-YEAR

EXT CLOSURE 3.37 5.70 8.29 10.92 7.28 14.64 11.21 8.76 17.75 5.55 11.90 8.94 10.58 8.48 4.19

INT CONSTRUCTION 8.47 10.89 6.62 5.49 7.20 7.88 7.32 8.51 8.59 2.22 15.97 14.45 9.48 11.51 1.66

CONVEYING 1.76 0.00 1.10 2.09 0.00 0.00 2.02 1.76 0.00 0.00 0.00 2.26 0.00 2.31 0.00

MECHANICAL 9.27 13.26 3.58 2.66 6.80 9.39 4.16 2.90 4.93 3.64 11.76 14.97 1.06 7.42 2.36

ELECTRICAL 11.86 7.71 8.18 7.49 7.07 6.12 10.86 9.41 5.39 4.34 7.41 10.09 1.64 8.23 3.36

SPEC CONSTRUCTION 3.94 0.82 1.58 0.47 1.13 15.21 0.63 0.71 0.87 8.11 0.00 6.17 1.52 5.17 1.90

FIXED EQUIP 3.41 7.18 5.18 6.31 2.58 2.56 4.51 0.11 0.00 0.66 2.51 1.65 0.00 0.09 0.00

TOTAL 50-YEAR 42.07 45.57 34.53 35.43 32.06 55.80 40.71 32.15 37.53 24.51 49.55 58.53 24.27 43.21 13.47

25-YEAR

ROOFING 1.70 3.62 1.98 1.65 2.29 1.13 3.69 1.82 4.57 4.17 2.38 1.29 2.89 1.04 3.68

INT CONSTRUCTION 5.30 6.41 4.99 4.43 5.70 7.20 6.45 5.21 5.66 1.38 5.23 8.04 6.22 4.11 1.44

HVAC 12.15 12.15 12.57 12.78 7.02 8.62 8.07 12.15 5.28 10.04 11.60 9.94 2.46 7.57 3.21

TOTAL 25-YEAR 19.15 22.19 19.53 18.85 15.01 16.95 18.21 19.18 15.52 15.60 19.21 19.27 11.56 12.72 8.34Note: Cost Factors are determined using 2004 R. S. Means Square Foot Costs (Adjusted for Region), Construction Publishers & Consultants, Kingston, MA.

C-16

ATTACHMENT 2

FACILITIES RENEWAL FORMULA - FY 2005-2006 SUMMARYANNUAL RENEWAL ALLOWANCE

GROSS SQUARE MESC/FOOTAGE-ALL SENIOR TWO-YEAR DAUPHIN ISLAND

CATEGORY INSTITUTIONS INSTITUTIONS COLLEGES SEA LAB TOTAL

ED. & GENERAL 31,419,999 38,154,108 15,946,521 195,904 54,296,533

AUXILIARY 14,931,220 18,480,440 1,003,533 8,692 19,492,665

OTHER 1,671,638 1,906,460 165,835 2,072,295

HEALTH E&G 4,315,755 7,673,387 7,673,387

HOSPITAL 2,824,859 6,094,182 6,094,182

VET. MEDICINE 508,023 779,442 779,442

AAES/ACES 461,769 849,506 849,506

TOTAL 56,133,264 73,937,525 17,115,889 204,596 91,258,010

FACILITIES RENEWAL FORMULA - FY 2006-2006 SUMMARY

CUMULATIVE RENEWAL BACKLOG

GROSS SQUARE MESC/FOOTAGE-ALL SENIOR TWO-YEAR DAUPHIN ISLAND

CATEGORY INSTITUTIONS INSTITUTIONS COLLEGES SEA LAB TOTAL

ED. & GENERAL 31,419,999 516,973,456 207,287,127 3,055,283 727,315,866

AUXILIARY 14,931,220 258,001,020 13,240,622 120,702 271,362,344

OTHER 1,671,638 24,776,380 2,351,862 27,128,242

HEALTH E&G 4,315,755 92,427,997 92,427,997

HOSPITAL 2,824,859 77,513,773 77,513,773

VET. MEDICINE 508,023 10,657,826 10,657,826

AAES/ACES 461,769 14,904,588 14,904,588

TOTAL 56,133,264 995,255,040 222,879,612 3,175,984 1,221,310,637Source: Alabama Commission on Higher Education. Fall 2003 Facilities Inventory.

C-17

FACILITIES RENEWAL ALLOWANCES AND BACKLOGS - FY 2005-2006PUBLIC SENIOR INSTITUTIONS

BUILDING ANNUAL RENEWAL CUMULATIVEAREA ALLOWANCE RENEWAL BACKLOG

INSTITUTION CATEGORY (GSF) (FORMULA) (FORMULA)($) ($)

ALABAMA A&M UNIVERSITY E&G 1,030,555 2,053,477 30,402,024AUXILIARY 876,889 1,089,304 13,369,716OTHER 91,836 101,870 709,586

TOTAL 1,999,280 3,244,651 44,481,326

ALABAMA STATE UNIVERSITY E&G 969,771 1,683,594 23,103,997AUXILIARY 627,494 1,034,202 15,067,578OTHER 92,668 206,730 3,414,448ACCOUNTANCY 1,801 4,198 55,348HIM 6,145 1,694 3,389OT 9,218 2,541 5,084PT 17,967 4,955 9,909ED LEADERSHIP 7,119 3,926 13,742

TOTAL 1,732,183 2,941,840 41,673,494

AUBURN UNIVERSITY E&G 3,931,483 7,150,004 95,090,047AUXILIARY 1,755,696 2,428,193 30,541,826OTHER 12,083 29,542 377,181

VET. MED. 508,023 779,442 10,657,826AES/CES 461,769 849,506 14,904,588

TOTAL 6,669,055 11,236,687 151,571,468

UNIVERSITY OF ALABAMA E&G 4,676,018 8,719,943 132,805,236AUXILIARY 3,039,430 4,320,216 69,103,517OTHER 61,566 31,469 222,136HEALTH E&G 98,481 241,499 3,598,485

TOTAL 7,875,495 13,313,127 205,729,374

UNIVERSITY OF ALABAMA - B'HAM E&G 2,584,723 3,920,630 44,562,791AUXILIARY 2,518,823 2,146,061 22,727,988OTHER 452,582 421,570 3,583,206HEALTH E&G 3,567,150 6,091,623 72,346,793HOSPITAL 1,867,913 3,561,531 40,577,912

TOTAL 10,991,191 16,141,415 183,798,690

UNIVERSITY OF ALABAMA - H'VILLE E&G 1,399,370 2,253,717 27,133,754AUXILIARY 534,363 538,363 5,867,464OTHER 162,216 55,842 278,001

TOTAL 2,095,949 2,847,922 33,279,220

UNIVERSITY OF SOUTH ALABAMA E&G 1,911,178 3,323,645 42,299,322AUXILIARY 1,985,256 3,156,641 49,961,423OTHER 273,476 518,268 5,692,981HEALTH E&G 650,124 1,340,265 16,482,719HOSPITAL 956,946 2,532,651 36,935,861

TOTAL 5,776,980 10,871,470 151,372,307

C-18




ATHENS STATE UNIVERSITY E&G 243,822 522,137 8,077,597AUXILIARY 29,822 55,149 753,439OTHER 28,764 51,018 875,174

TOTAL 302,408 628,304 9,706,209

AUBURN UNIVERSITY - MONTGOMERY E&G 623,798 1,207,703 15,156,823AUXILIARY 234,614 180,768 2,190,329OTHER

TOTAL 858,412 1,388,471 17,347,152

JACKSONVILLE STATE UNIVERSITY E&G 1,222,033 1,693,719 19,736,563AUXILIARY 576,008 670,482 7,762,116OTHER 188,543 332,339 5,788,468

TOTAL 1,986,584 2,696,540 33,287,147

TROY STATE UNIVERSITY E&G 676,309 1,038,576 13,099,917AUXILIARY 833,360 915,510 13,247,599OTHER 23,433 33,961 498,368

TOTAL 1,533,102 1,988,047 26,845,883

TROY STATE UNIVERSITY - DOTHAN E&G 125,546 105,428 708,770AUXILIARY 2,965 3,815 28,617OTHER

TOTAL 128,511 109,243 737,387

TROY STATE UNIVERSITY - MTGY. E&G 190,748 80,789 239,742AUXILIARY 106,017 43,631 261,976OTHER 74,065 80,965 2,691,114

TOTAL 370,830 205,385 3,192,832

TROY STATE UNIVERSITY - P.C. E&G 72,434 69,580 498,270AUXILIARY 1,520 2,515 23,892OTHER

TOTAL 73,954 72,095 522,161

UNIVERSITY OF MONTEVALLO E&G 555,877 1,244,443 19,275,810AUXILIARY 443,606 720,544 9,724,965OTHER 11,806 15,485 255,658

TOTAL 1,011,289 1,980,472 29,256,433

UNIVERSITY OF NORTH ALABAMA E&G 1,149,564 1,934,785 27,746,993AUXILIARY 382,715 707,484 10,469,412OTHER 30,651 27,401 390,059

TOTAL 1,562,930 2,669,670 38,606,463

C-19




UNIVERSITY OF WEST ALABAMA E&G 509,436 1,134,624 16,948,330AUXILIARY 248,034 467,562 6,899,165OTHER

TOTAL 757,470 1,602,186 23,847,495

TOTAL - SENIOR INSTITUTIONS E&G 21,914,915 38,154,108 516,973,456AUXILIARY 14,196,612 18,480,440 258,001,020OTHER 1,503,689 1,906,460 24,776,380HEALTH E&G 4,315,755 7,673,387 92,427,997HOSPITAL 2,824,859 6,094,182 77,513,773VET. MED. 508,023 779,442 10,657,826AES/CES 461,769 849,506 14,904,588

TOTAL 45,725,623 73,937,525 995,255,040SOURCE: Alabama Commission on Higher Education, Fall 2003 Facility Inventory.

FACILITIES RENEWAL ALLOWANCES AND BACKLOGS - FY 2005-2006

MARINE ENVIRONMENTAL SCIENCE CONSORTIUM / DAUPHIN ISLAND SEA LAB

INSTITUTION CATEGORY BUILDING ANNUAL RENEWAL CUMULATIVEAREA ALLOWANCE RENEWAL BACKLOG(GSF) (FORMULA) (FORMULA)

($) ($)

MESC/DAUPHIN ISL SEA LAB E&G 104,896 195,904 3,055,283AUXILIARY 16,080 8,692 120,702

TOTAL 120,976 204,596 3,175,984

SOURCE: Alabama Commission on Higher Education, Fall 2003 Facility Inventory.

C-20

FACILITIES RENEWAL ALLOWANCES AND BACKLOGS - FY 2005-2006PUBLIC COMMUNITY AND TECHNICAL COLLEGES


($) ($)

ALABAMA SOUTHERN COMM. COL. E&G 182,593 391,987 5,456,527AUXILIARY 3,534 6,345 80,165OTHER

TOTAL 186,127 398,332 5,536,692

BESSEMER TECHNICAL COLLEGE E&G 242,603 450,328 5,131,776AUXILIARY 10,277 18,893 198,377OTHER 1,122 2,579 33,518

TOTAL 254,002 471,800 5,363,672

BEVILL COMMUNITY COLLEGE E&G 533,400 997,933 12,456,827AUXILIARY 169,988 198,856 2,519,546OTHER 22,573 44,074 529,371

TOTAL 725,961 1,240,863 15,505,744

BISHOP COMMUNITY COLLEGE E&G 528,045 1,029,224 14,874,786AUXILIARY 17,237 36,067 562,421OTHER

TOTAL 545,282 1,065,291 15,437,206

CALHOUN COMMUNITY COLLEGE E&G 611,679 1,113,304 15,009,660AUXILIARY 20,284 16,004 181,295OTHER 14,000 14,602 226,358

TOTAL 645,963 1,143,910 15,417,314

CENTRAL ALABAMA COMMUNITY COL. E&G 265,052 547,192 7,691,053AUXILIARY 40,717 37,985 448,190OTHER 10,955 29,170 457,403

TOTAL 316,724 614,347 8,596,646

CHATTAHOOCHEE VALLEY COM. COL. E&G 125,308 188,395 2,364,798AUXILIARYOTHER

TOTAL 125,308 188,395 2,364,798

C-21



($) ($)

DRAKE TECHNICAL COLLEGE E&G 106,529 214,203 2,829,127AUXILIARY 5,272 12,187 186,539OTHER

TOTAL 111,801 226,390 3,015,666

ENTERPRISE-OZARK COMM. COLLEGE E&G 295,147 618,762 9,321,806AUXILIARY 9,740 7,273 108,248OTHER 34,099

TOTAL 338,986 626,035 9,430,055

FAULKNER COMMUNITY COLLEGE E&G 225,136 369,833 4,435,586AUXILIARY 65,231 133,197 2,012,493OTHER 7,680 2,905 17,658

TOTAL 298,047 505,935 6,465,738

GADSDEN COMMUNITY COLLEGE E&G 813,365 1,330,603 18,247,308AUXILIARY 67,877 134,472 1,956,719OTHER 21,430 3,212 11,458

TOTAL 902,672 1,468,287 20,215,484

INGRAM TECHNICAL COLLEGE E&G 159,990 270,230 3,209,879AUXILIARYOTHER

TOTAL 159,990 270,230 3,209,879

JEFF DAVIS COMMUNITY COLLEGE E&G 217,375 450,475 5,955,496AUXILIARY 29,930 25,227 202,376OTHER 6,923 14,757 208,234

TOTAL 254,228 490,459 6,366,106

JEFFERSON STATE COMMUNITY COLL E&G 630,884 1,293,885 18,373,162AUXILIARY 6,100 13,009 174,908OTHER

TOTAL 636,984 1,306,894 18,548,070

C-22



($) ($)

LAWSON STATE COMMUNITY COLL E&G 299,387 643,242 9,382,409AUXILIARY 6,017 13,125 177,006OTHER

TOTAL 305,404 656,367 9,559,414

L. B. WALLACE COMMUNITY COLLEGE E&G 235,718 472,164 6,576,363AUXILIARY 5,883 2,264 15,394OTHER

TOTAL 241,601 474,428 6,591,757

NORTHEAST COMMUNITY COLLEGE E&G 244,418 466,536 6,240,558AUXILIARY 5,913 13,506 199,676OTHER

TOTAL 250,331 480,042 6,440,234

NORTHWEST-SHOALS COMM COL E&G 416,931 589,655 6,577,091AUXILIARY 26,661 37,532 451,121OTHER

TOTAL 443,592 627,187 7,028,213

REID TECHNICAL COLLEGE E&G 66,976 123,548 1,406,938AUXILIARY 2,330 2,999 28,274OTHER

TOTAL 69,306 126,547 1,435,212

SHELTON COMMUNITY COLLEGE E&G 694,022 601,049 5,073,577AUXILIARY 21,978 12,198 48,330OTHER 4,400

TOTAL 720,400 613,247 5,121,907

SNEAD COMMUNITY COLLEGE E&G 269,127 493,979 6,757,818AUXILIARY 25,521 49,183 716,661OTHER 14,826 23,403 460,871

TOTAL 309,474 566,565 7,935,350

C-23



($) ($)

SOUTHERN UNION COMMUNITY COL E&G 526,929 682,667 8,487,045AUXILIARY 52,616 92,694 1,383,778OTHER

TOTAL 579,545 775,361 9,870,822

TRENHOLM TECHNICAL COLLEGE E&G 236,178 471,565 6,527,317AUXILIARY 7,773 17,666 255,553OTHER 11,976 15,443 193,034

TOTAL 255,927 504,674 6,975,905

WALLACE-DOTHAN COMMUNITY COL. E&G 524,020 707,761 9,296,571AUXILIARY 21,586 43,178 727,329OTHER

TOTAL 545,606 750,939 10,023,900

WALLACE-HANCEVILLE COMM. COL. E&G 742,017 1,007,550 9,963,363AUXILIARY 94,623 76,568 564,879OTHER 2,835 5,472 60,196

TOTAL 839,475 1,089,590 10,588,439

WALLACE-SELMA COMMUNITY COL. E&G 207,359 420,451 5,640,285AUXILIARY 1,440 3,105 41,345OTHER 15,130 10,218 153,761

TOTAL 223,929 433,774 5,835,390

TOTAL COMMUNITY & TECHNICAL COL E&G 9,400,188 15,946,521 207,287,127AUXILIARY 718,528 1,003,533 13,240,622OTHER 167,949 165,835 2,351,862

TOTAL 10,286,665 17,115,889 222,879,612

SOURCE: Alabama Commission on Higher Education, Fall 2003 Facility Inventory.

C-24

SECTION D

DATA ELEMENTS SUPPORTING THE FUNDING FORMULAS

ALL PUBLIC INSTITUTIONS

This section presents the basic data elements and those derived statistics that are inputs to the formulas used by the Alabama Commission on Higher Education in determining the ACHE Standards for funding of Alabama public institutions of higher education.

2005-2006 ACADEMIC PROGRAM INPUTS THREE YEAR AVERAGEHEADCOUNT

BALANCE 3 Yr Avg.THREE YEAR AVERAGE THREE YEAR AVERAGE AP UNW'TED

WEIGHTED REMEDIAL SPONSORED UNWEIGHTED SEMESTER CREDIT HOURS PLUS TOTAL ALL UTILITY GROSS MILITARYINSTITUTION CHP INCREMENT RESEARCH LOWERDIV UPPERDIV G-1 G-2 LAW&OTHER MILITARY OTHER UNITS ALLOWANCE SQ. FEET CREDIT HRS

DOCTORALAAM 260,491 3,590 9,752,657 102,592 41,532 17,846 3,608 5,754 5,754 2,507,340 1,030,555 91ASU 190,965 13,373 864,188 108,605 37,708 13,995 5,468 123 5,591 2,758,751 975,513 255AU 1,142,908 48,712,029 359,918 214,056 28,326 22,149 21,873 830 22,703 11,958,872 4,170,177 1,832UA 1,029,551 3,201 29,207,825 288,674 172,620 47,727 21,957 16,807 20,160 85 20,245 10,316,071 4,663,401 1,376UAB 512,836 9,095 13,789,194 179,803 77,475 37,939 7,787 12,435 4,458 16,892 5,920,478 1,507,594 1,264UAH 331,925 1,333 38,607,601 76,132 57,165 18,952 3,317 7,044 7,044 3,483,217 1,444,120 59USA 344,137 11,491,094 163,167 74,726 21,056 1,463 9,522 3,564 13,087 5,168,336 1,873,014 454USA-Bald 10,475 730 3,205 2,494 251 12,836 13,087 52,309 22,165

Subtotal Doctoral 3,823,288 30,593 152,424,588 1,279,621 678,487 188,335 60,281 16,807 82,507 42,165,373 15,686,539 5,331

UAB-HLTH 536,139 60,251,395 2,481 22,226 27,740 17,157 2,686 14,206 16,892 5,065,615 1,445,254UAB-Opt 12,257 1,312,854 2 94 665 25 16,867 16,892 282,717 62,245USA-HLTH 227,118 6,076 26,630 19,027 1,042 2,866 10,220 13,087 Health Related 775,514 61,564,249 8,557 48,858 46,861 18,864 5,578 5,348,332 1,507,499

UA-Medicine 58,080 278,694 2,367 933 85 20,160 20,245 332,570 98,481UAB-Medicine 651,234 119,870,449 12,733 13,733 16,950 1,271 15,621 16,892 11,219,055 2,734,488UAB-Dentistry 140,446 1,231,979 4,627 4,547 1,540 306 16,586 16,892 1,448,164 307,406UAB-Optometry 94,966 9,758,186 3,267 3,883 193 169 16,723 16,892 926,167 197,999USA-Medicine 237,245 3,203,214 5,240 6,217 4,792 447 12,640 13,087 1,197,766 584,276AU-Vet Med 203,532 7,440 8,000 613 417 22,286 22,703 1,353,824 527,190AU-Pharmacy 168,985 9,987 6,560 414 22,289 22,703 First Prof. Health: 1,554,487 134,342,522 43,293 45,307 25,022 3,108 16,477,546 4,449,840

ASU-ACCT 585 179 13 5,577 5,591 9,202 2,426ASU-HMG 1,911 109 526 23 5,567 5,591 24,236 6,145ASU-OT 2,192 696 25 5,566 5,591 30,982 9,218ASU-PT 4,650 799 25 5,566 5,591 74,954 20,861ASU-Ed Leadership 4,562 519 36 5,555 5,591 9,309 6,116Subtotal Doctoral Other 13,900 109 1,222 978 519 123 27,831 148,682 44,766

TOTAL DOCTORAL 6,167,189 30,593 348,331,358 1,288,287 728,567 279,467 124,971 41,829 91,316 64,139,933 21,688,644 5,331

NONDOCTORAL ATHENS 83,973 56,455 2,229 2,229 532,263 243,822AUM 164,853 4,798 122,872 72,871 38,885 12,749 101 5,045 5,045 1,766,274 623,798 125JSU 296,498 4,002 986,452 111,669 82,351 23,637 8,743 64 8,807 2,767,081 1,218,086 1,923JSU-Gad 6,719 4,582 408 64 8,743 8,807TSU 219,455 2,225 70,889 73,140 45,809 23,622 6,093 1,448 7,541 1,521,190 607,644 412TSU-PC 57,739 645 9,953 17,205 1,448 6,093 7,541 85,979 72,434TSUD 56,499 10,562 15,140 18,594 5,161 1,704 137 1,841 588,288 131,667TSUM 74,414 1,492 37,519 16,795 5,441 3,446 239 3,685 534,667 190,748 120UM 108,953 45,074 28,774 6,994 3,014 3,014 1,236,626 552,208UNA 195,196 1,084 302,526 75,547 59,092 10,520 5,672 5,672 2,494,843 1,137,879 240UWA 71,993 3,023 28,938 15,725 8,155 2,287 2,287 1,058,099 509,436Subtotal Nondoctoral 1,336,292 16,624 1,493,301 460,543 377,015 113,892 101 39,746 12,585,310 5,287,722 2,820

TSUD-FR 10,707 3,035 2,782 761 137 1,704 1,841TSUM-Max 20,403 261 4,581 2,071 3,875 239 3,446 3,685

TOTAL NONDOC 1,367,402 16,885 1,493,301 468,159 381,868 118,528 101 40,122 12,585,310 5,287,722 2,820

GRAND TOTAL 7,534,591 47,479 349,824,659 1,756,446 1,110,435 397,995 125,072 41,829 131,438 76,725,243 26,976,366 8,151

D-1

HEADCOUNT FOR AP PURPOSES: PUBLIC SENIOR UNIVERSITIES

Preliminary Preliminary Preliminary Three YearFall 2002 Fall 2003 Fall 2004 Average

Headcount Headcount Headcount HeadcountDoctoral Enrollment Enrollment Enrollment Enrollment

Alabama A&M University 5,293 6,108 5,862 5,754Alabama State University 5,653 5,640 5,111 5,468

ASU-Master of Accountancy 14 13 13 13ASU-BS-Hlth Info Mgmt 23 25 22 23ASU-MS Physical Therapy 23 20 32 25ASU-BS Occup. Therapy 19 21 35 25ASU-Ed.D Ed Leadership 30 42 36

Auburn University 22,135 21,864 21,619 21,873University of Alabama 19,474 20,145 20,861 20,160Univ. of Alabama at Birmingham 11,987 12,601 12,716 12,435Univ. of Alabama in Huntsville 7,045 7,051 7,036 7,044Univ. of South Alabama-Main 9,323 9,634 9,610 9,522 Baldwin 192 257 304 251 Doctoral On-Campus 81,181 83,409 83,263 82,630

UAB Health 2,458 2,689 2,911 2,686UAB Vision Science 25 25 26 25USA Health 2,553 2,916 3,130 2,866 Doctoral Hlth Related 5,036 5,630 6,067 5,578

AU-PHARM 367 406 468 414AU-VET MED 406 416 428 417UA-MED 87 82 85 85UAB-MED 1,232 1,277 1,304 1,271UAB-Dentistry 306 307 306 306UAB-Optometry 172 166 169 169USA-MED 442 445 454 447

Doctoral First Prof Hlth 3,012 3,099 3,214 3,108

Total Doctoral 89,229 92,138 92,544 91,316

NondoctoralAthens State University 2,283 2,059 2,346 2,229Auburn Univ. in Montgomery 4,961 5,179 4,996 5,045Jacksonville State Univ. 8,824 8,762 8,643 8,743

Gadsden 51 80 61 64Troy State Univ.-Main 5,698 6,093 6,488 6,093

Phenix City 1,246 1,392 1,705 1,448Troy State Univ. Dothan 1,671 1,682 1,760 1,704Troy State Univ. Montgomery 3,024 3,518 3,797 3,446University of Montevallo 2,935 3,094 3,013 3,014University of North Alabama 5,416 5,630 5,971 5,672University of West Alabama 1,977 2,267 2,617 2,287 Nondoctoral On Campus 38,086 39,756 41,397 39,746 TSUD -Ft. Rucker 149 163 98 137TSUM -Maxwell 271 240 206 239

Total Nondoctoral 38,506 40,159 41,701 40,122

TOTAL 127,735 132,297 134,245 131,438

SOURCE: Alabama Commission on Higher Education's Preliminary Opening Fall Enrollment Report.

D-2

Unweighted Semester Credit Hours - Remedial Courses2001-2002 - 2003-2004Public Senior Institutions

3 Year2001-02 2002-03 2003-04 Average

Doctoral

Alabama A&M University 3,768 2,466 3,132 3,122Alabama State University 11,847 12,543 10,497 11,629Auburn UniversityUniversity of Alabama 2,461 2,811 3,079 2,784University of AL at Birmingham 7,993 7,564 8,170 7,909University of AL in Huntsville 1,311 996 1,170 1,159University of South Alabama

Total Doctoral 27,380 26,380 26,048 26,603

Nondoctoral

Athens State UniversityAuburn University in Montgomery 4,674 3,870 3,972 4,172Jacksonville State University 3,414 3,652 3,374 3,480Troy State University 2,409 2,709 687 1,935Troy State University DothanTroy State University Montgomery 609 1,047 2,235 1,297Troy State Univ. Montgomery-Maxwell 285 210 186 227University of MontevalloUniversity of North Alabama 945 918 966 943University of West Alabama 3,009 2,625 2,253 2,629

Total Nondoctoral 15,345 15,031 13,673 14,683

Total Senior Institutions 42,725 41,411 39,721 41,286SOURCE: Alabama Commission on Higher Education, Credit Hour Production Reports.

D-3

Utilities Allowances FY 2005-2006 Budget FormulaSenior Institutions

Education and General Space Only

Utilities O&MInstitutional E&G Space Maximum Expended Total

Utilities June 30, 2004 Purch Util FY 2003-04 Purch UtilInstitution Allowance (GSF) Allowance ($) Allowance

AAM 2.433 1,030,555 2,507,340 $2,507,340ASU 2.828 975,513 2,758,751 2,758,751 ASU-ACCT 3.793 2,426 9,202 9,202 ASU-PT 3.593 20,861 74,954 74,954 ASU-OT 3.361 9,218 30,982 30,982 ASU-HIM 3.944 6,145 24,236 24,236 ASU-EDL 1.522 6,116 9,309 9,309AU 2.568 4,170,177 10,709,015 1,249,857 11,958,872UA 2.033 4,663,401 9,480,694 835,377 10,316,071UAB 3.134 1,507,594 4,724,800 1,195,678 5,920,478UAH 2.412 1,444,120 3,483,217 3,483,217USA 2.194 1,873,014 4,109,393 1,058,943 5,168,336USA-BC 2.360 22,165 52,309 52,309

UAB-Health 3.505 1,445,254 5,065,615 5,065,615UAB-Optics 4.542 62,245 282,717 282,717AU-Vet Med 2.568 527,190 1,353,824 1,353,824UA-Medical 3.377 98,481 332,570 332,570UAB-Medical 3.786 2,734,488 10,352,772 866,284 11,219,055UAB-Dentistry 4.418 307,406 1,358,120 90,044 1,448,164UAB-Optometry 4.542 197,999 899,311 26,855 926,167USA-Medical 2.050 584,276 1,197,766 1,197,766 Doctoral 21,688,644 58,816,895 5,323,038 64,139,933

ATHENS 2.183 243,822 532,263 532,263AUM 2.294 623,798 1,430,993 335,281 1,766,274JSU 2.257 1,218,086 2,749,220 17,861 2,767,081TSU 2.420 607,644 1,470,498 50,692 1,521,190TSUD 4.468 131,667 588,288 588,288TSUM 2.803 190,748 534,667 534,667TSUPC 1.187 72,434 85,979 85,979UM 1.782 552,208 984,035 252,591 1,236,626UNA 2.113 1,137,879 2,404,338 90,505 2,494,843UWA 2.077 509,436 1,058,099 1,058,099 Nondoctoral 5,287,722 11,838,380 746,930 12,585,310

Total Sr. Inst. 26,976,366 70,655,276 6,069,968 76,725,243

D-4

UTILITIES CAPITAL REPLACEMENT ALLOWANCE - CAPITAL EXPENDITURESSENIOR INSTITUTIONS - E&G SPACE ONLY

1999-2000 - 2003-2004

UTILITIES UTILITIES UTILITIES UTILITIES UTILITIES CAPITAL CAPITAL CAPITAL CAPITAL CAPITAL CAPITAL ALLOW.

EXPENDITURES EXPENDITURES EXPENDITURES EXPENDITURES EXPENDITURES (20% OF EACH1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 YEARS TOTALS)

INSTITUTIONS ($) ($) ($) ($) ($) ($)

A&MASUATHENSAU 2,867,951 193,946 72,868 8,608,912 4,406,531 3,230,042AUM 390,592 144,469 61,000 30,126 125,237JSU 55,957 266,186 64,429TSU 55,657 11,131TSUDTSUMUA 80,673 262,974 535,383 809,644 123,605 362,456UAB-UNIV. COL. 1,666,775 1,662,172 714,945 1,514,171 53,031 1,122,219UAB-OPTOMETRY 61,067 1,784 50,833 78,902 2,386 38,995UAB-OPTICSUAB-DENTAL 276,598 4,281 118,064 244,221 8,087 130,250UAB-MEDICAL 1,587,747 22,732 755,939 1,919,953 69,073 871,089UAHUMUNA 41,500 8,300USA 182,000 395,723 59,830 127,511UWA

TOTAL 6,931,404 2,474,358 2,406,489 13,601,652 5,044,387 6,091,658Source: Alabama Commission on Higher Education, Utilities Replacement Reports.

D-5

ALABAMA PUBLIC FOUR-YEAR UNIVERSITIESSponsored Research Dollars 2002-2003

(For the 2005-2006 AP Formula)

Research 5% of Res.DOCTORAL Amount Amount

Alabama A&M University $9,752,657 487,633Alabama State University 864,188 43,209Auburn University 48,712,029 2,435,601University of Alabama - Main 29,207,825 1,460,391 - Medicine 278,694 13,935UA: Subtotal 29,486,519 1,474,326Univ. of AL in Birmingham -Academic Affairs 13,789,194 689,460 -Health 60,251,395 3,012,570 -Physiological Optics 1,312,854 65,643 -Dentistry 1,231,979 61,599 -Medicine 119,870,449 5,993,522 -Optometry 9,758,186 487,909UAB: Subtotal 206,214,057 10,310,703University of AL in Huntsville 38,607,601 1,930,380University of South Alabama -Main 11,491,094 574,555 -College of Medicine 3,203,214 160,161USA: Subtotal 14,694,308 734,715

NONDOCTORAL

Athens State UniversityAuburn Univ. at Montgomery 122,872 6,144Jacksonville State University 986,452 49,323Troy State University 70,889 3,544Troy State University Dothan 10,562 528Troy State University MontgomeryUniversity of MontevalloUniversity of North Alabama 302,526 15,126University of West Alabama

TOTAL $349,824,659 $17,491,233

SOURCE: Alabama Comm. on Higher Education Sponsored Research Survey, 2004.

D-6

SECTION E

CRITICAL CAPITAL FUNDING NEEDS ALABAMA PUBLIC HIGHER EDUCATION

This section presents the Alabama Commission on Higher Education's summary of the accumulated backlog of critical capital needs arising from the effects of age, methods and materials of construction, and other factors impacting on the continued usefulness of existing physical plant facilities at the public institutions of higher education in Alabama.

Table 1Facilities Renewal Formula FY 2005-2006 Summary

Alabama Public Institutions

Annual Renewal Allowance

Institution E&G Auxiliary Other Health E&G Hospital Vet Med AAES/ACES TotalSenior & Dauphin Isl Sealab $38,350,012 $18,489,132 $1,906,460 $7,673,387 $6,094,182 $779,442 $849,506 $74,142,121Two-Year System $15,946,521 $1,003,533 $165,835 $17,115,889Total $54,296,533 $19,492,665 $2,072,295 $7,673,387 $6,094,182 $779,442 $849,506 $91,258,010

Cumulative Renewal AllowanceSenior & Dauphin Isl Sealab $520,028,739 $258,121,722 $24,776,380 $92,427,997 $77,513,773 $10,657,826 $14,904,588 $998,431,025Two-Year System $207,287,127 $13,240,622 $2,351,862 $222,879,612Total $727,315,866 $271,362,344 $27,128,242 $92,427,997 $77,513,773 $10,657,826 $14,904,588 $1,221,310,637

Table 2Summary of Immediate and Intermediate Capital Projects Requests

Alabama Public Institutions

New Construction

Renovation / Major

RemodelingMajor Capital

Equipment

Deferred Maintenance /

Facilities Renewal Total

$819,530,940 $293,125,464 $36,707,097 $93,602,536 $1,242,966,037$166,645,000 $44,574,717 $14,995,000 $27,021,000 $253,235,717$986,175,940 $337,700,181 $51,702,097 $120,623,536 $1,496,201,754Total

Senior & Dauphin Isl SealabTwo-Year System

Institution

By applying well-established facilities planning standards, state and national codes, and otherprofessional criteria to campus facilities and enrollment data, one-third of the facilities renewalformula backlog may be viewed as critical.

This year, from the Facilities Master Plans and Capital Project Requests reports submitted by allpublic two and four-year institutions, the Commission staff has received capital requests forimmediate (year 1) and intermediate (year 2) capital projects totaling over a billion dollars. Table2 is a recapitulation of all the institutional requests. Appendix 1, which follows this narrative,describes the institutional requests in more detail.

Critical Capital Needs of Alabama

Public Higher Education

As prescribed by Section 16-5-2(c), "...the Commission shall serve in an advisory capacity to thelegislature and the governor of this state in respect to all matters pertaining to state funds for theoperation and the allocation of funds for capital improvements of state supported institutions ofhigher education."

The Commission's funding recommendation for FY 2005-2006 is based solely on the estimatedfacilities renewal backlog for all of public higher education. This estimate is based on theCommission's Facilities Renewal Formula, which is located on pages C-13 through C-24. Asummary of which can be found on Table 1 below.

E-1

APPENDIX 1

SUMMARY OF IMMEDIATE AND INTERMEDIATE CAPITAL PROJECTS REQUESTS OF ALABAMA PUBLIC HIGHER EDUCATIONSENIOR INSTITUTIONS AND MESC/DAUPHIN ISLAND SEA LAB

RENOVATION/ MAJOR DEFERRED TOTAL COSTNEW MAJOR CAPITAL MAINTENANCE/ OF CAPITAL

INSTITUTION CONSTRUCTION REMODELING EQUIPMENT FAC RENEWAL REQUESTS

ALABAMA A&M UNIVERSITY $10,950,000 $17,186,200 $2,025,000 $8,120,000 $38,281,200ALABAMA STATE UNIVERSITY 62,445,000 20,550,000 7,013,445 6,477,000 96,485,445ATHENS STATE UNIVERSITY 2,375,000 650,000 2,020,000 5,045,000AUBURN UNIVERSITY 182,313,000 61,450,000 7,010,685 250,773,685AUBURN UNIV. AT MONTGOMERY 31,540,000 1,050,000 32,590,000JACKSONVILLE STATE UNIVERSITY 6,000,000 9,850,000 250,000 7,540,500 23,640,500TROY STATE UNIVERSITY 51,600,000 54,650,000 1,005,000 900,000 108,155,000TROY STATE UNIV. DOTHAN 7,243,760 400,000 25,000 105,000 7,773,760TROY STATE UNIV. MTGY. 4,800,000 7,025,000 75,000 800,000 12,700,000UNIVERSITY OF ALABAMA 234,228,282 61,609,900 33,755,454 329,593,636UNIVERSITY OF AL. AT BIRMINGHAM 30,400,000 22,780,000 3,400,000 10,000,000 66,580,000UNIVERSITY OF AL. IN HUNTSVILLE 39,100,000 500,000 18,500,000 2,330,000 60,430,000UNIVERSITY OF MONTEVALLO 1,000,000 4,100,000 5,100,000UNIVERSITY OF NORTH ALABAMA 50,700,898 11,105,864 1,554,152 2,012,472 65,373,386UNIVERSITY OF SOUTH ALABAMA 96,210,000 11,180,000 1,705,000 3,945,425 113,040,425UNIVERSITY OF WEST ALABAMA 11,000,000 12,213,500 3,436,000 26,649,500MESC/ DAUPHIN ISL. SEA LAB 250,000 504,500 754,500

TOTAL SENIOR AND MESC $819,530,940 $293,125,464 $36,707,097 $93,602,536 $1,242,966,037

E-2

APPENDIX 1 (Continued)SUMMARY OF IMMEDIATE AND INTERMEDIATE CAPITAL PROJECTS REQUESTS OF ALABAMA PUBLIC HIGHER EDUCATION

COMMUNITY AND TECHNICAL COLLEGES

RENOVATION/ MAJOR DEFERRED TOTAL COSTNEW MAJOR CAPITAL MAINTENANCE/ OF CAPITAL

INSTITUTION CONSTRUCTION REMODELING EQUIPMENT FAC RENEWAL REQUESTS

ALABAMA SOUTHERN COM. COLLEGE $600,000 $1,305,000 $537,000 $2,442,000

BESSEMER TECHNICAL COLLEGE 3,825,000 12,040,217 6,720,000 22,585,217

BEVILL STATE COMMUNITY COLLEGE 10,200,000 2,060,000 725,000 12,985,000

BISHOP STATE COMMUNITY COLLEGE 1,250,000 2,300,000 309,000 3,859,000

CALHOUN COMMUNITY COLLEGE 500,000 100,000 2,420,000 3,020,000

CENTRAL ALABAMA COM. COLLEGE 3,650,000 75,000 265,000 3,990,000

CHATTAHOOCHEE VALLEY COM COL 6,000,000 250,000 6,250,000

DRAKE TECHNICAL COLLEGE 550,000 550,000

ENTERPRISE-OZARK COM COLLEGE 12,290,000 2,155,000 7,300,000 1,420,000 23,165,000

FAULKNER COMMUNITY COLLEGE 19,000,000 3,250,000 22,250,000

GADSDEN COMMUNITY COLLEGE 20,100,000 7,590,000 2,000,000 3,827,000 33,517,000

INGRAM TECHNICAL COLLEGE 200,000 60,000 150,000 410,000

JEFFERSON DAVIS COMM. COLLEGE 2,180,000 515,500 300,000 540,500 3,536,000

JEFFERSON STATE COM. COLLEGE 24,000,000 400,000 172,500 24,572,500

LAWSON COMMUNITY COLLEGE 3,250,000 1,344,000 345,000 900,000 5,839,000

L. B. WALLACE STATE JUNIOR COL. 3,580,000 550,000 50,000 4,180,000

NORTHEAST AL COM. COLLEGE 5,000,000 50,000 65,000 5,115,000

NORTHWEST-SHOALS COMM COL. 5,520,000 2,200,000 860,000 8,580,000

REID TECHNICAL COLLEGE 100,000 350,000 3,715,000 4,165,000

SHELTON ST COMMUNITY COLLEGE 250,000 2,950,000 500,000 3,700,000

SNEAD COMMUNITY COLLEGE 100,000 450,000 175,000 485,000 1,210,000

SOUTHERN UNION COMM. COLLEGE 23,000,000 600,000 23,600,000

TRENHOLM TECHNICAL COLLEGE 2,800,000 1,225,000 1,160,000 5,185,000

WALLACE COM. COLLEGE DOTHAN 400,000 4,800,000 150,000 5,350,000

WALLACE COM. COL. HANCEVILLE 18,350,000 650,000 350,000 19,350,000

WALLACE COM. COLLEGE SELMA 500,000 1,330,000 1,450,000 550,000 3,830,000

TOTAL COM & TECH COL. $166,645,000 $44,574,717 $14,995,000 $27,021,000 $253,235,717

E-3

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